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Scenario #2 - Diann has come to see you to do two different stock transactions. The first transaction is a purchase. Diann has $10,000 and

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Scenario \#2 - Diann has come to see you to do two different stock transactions. The first transaction is a purchase. Diann has $10,000 and would like to buy as many shares as possible of Telus that she can. Telus shares are currently trading at $30 /share. Your commission for the purchase is $10. The second transaction is a sale. Diann has owned 150 shares of RBC Stock for the past 5 years and would like to sell all her RBC stock. She purchased the shares at $100 per share. You do not charge a commission for sales. Diann's marginal tax rate is 38%. Please calculate the following: ( 10 points) a. How many shares of Telus will Diann buy? ( 2 points) No. of shares = Investment/ Price per share =$10,000/$30=333.33 b. Each year that Diann has owned RBC stock (including this year), it has paid an annual dividend of $1.50 per share. How much has Diann made in dividend earnings (before tax)? (1 point) c. Diann sells her RBC shares for $125 per share. How much are her net proceeds from the sale? ( 3 points) d. How much will Diann pay in total taxes on the dividends she earned from her RBC shares? ( 2 points) e. How much will Diann pay in taxes on the sale of her RBC shares? (2 points)

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