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Please answer all 4 questions :) 1. Return on Stock. Joel purchased 100 shares of stock for $20 per share. During the year, he received
Please answer all 4 questions :)
1. Return on Stock. Joel purchased 100 shares of stock for $20 per share. During the year, he received dividend checks amounting to $150. Joel recently sold the stock for $32 per share. What was Joel's return on the stock? 2. Dollar Amount of Return. What is the dollar amount of Joel's return (see problem 1)? 3. Capital Gains Tax. Joel (from problem 1) is in a 25% tax bracket. What amount of taxes will he pay on his capital gain if he held the stock for less than a year? 4. Capital Gains Tax. How much would Joel (from problem 1) save in taxes if he held the stock for more than a year, assuming he sold it for the same amountStep by Step Solution
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