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Helen holds 400 shares of Fizbo incorporated stock that she purchased 11 months ago. The stock has done very well and has appreciated $60/share since

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Helen holds 400 shares of Fizbo incorporated stock that she purchased 11 months ago. The stock has done very well and has appreciated $60/share since Helen bought the stock. When sold, the stock will be taxed at capital gains rates (the long-term rate is 15 percent and the short-term rate is the taxpayer's marginal tax rate). Ignore the time value of money, a. It Helen's marginal tax rate is 35 percent, how much would she save by holding the stock an additional month before selling? Tax savings b. What might prevent Helen from waiting to sell? Helen bears The stock price could In addition, Helen may be selling the stock if she holds the stock for an additional month substantially if there is market volatility or the company encounters financial difficulties for which she may be unwilling to wait Tax savings b. What might prevent Helen from waiting to sell? Helen bears The stock price could In addition, Helen may be se if she holds the stock for an additional month Cubstantially if there is market volatility or if the company encou for which she may additional risk no risk at might prevent Helen from waiting to sell? bears ock price could ition, Helen may be se if she holds the stock for an additional month. substantially if there is market volatility or if the company encounters f for which she may be unw increase decrease t prevent Helen from waiting to sell? e could melen may be selling the stock if she holds the stock for an additional month. substantially if there is market volatility or if the company encounters finan for which she may be unwilling to generate cash flow to prevent cash flow

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