Question
(Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $ 1.06 million worth of the company's 460,000 shares of stock, which is
(Stock repurchase and taxes)The Barryman Drilling Company is planning on repurchasing $1.06 million worth of the company's 460,000 shares of stock, which is currently trading at a price of $10.62 per share. Stan Barryman is the founder of the company and still holds 19,000 shares of company stock that he originally purchased for $7.97 per share. If Stan decides to sell 2,100 of his shares for $10.62 a share, what will be his after-tax proceeds where capital gains are taxed at 15 percent?
Stan's after-tax proceeds from the sale are $ ( ) . (Round to the nearest dollar.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started