Question
What is the holding period return to an investor who bought 100 shares of Boe Oil ten months ago for $26 a share, received two
What is the holding period return to an investor who bought 100 shares of Boe Oil ten months ago for $26 a share, received two $150 dividend checks, and sold the stock today at $38 a share?
Answer: 57.69%
For Number 4 above what is the tax on the capital gain? What is the tax on the dividend? What is the tax on the capital gain? (you made $60,000 from your job (2007) before the capital gain, you only held the stock for 10 months).
Tax Rates Individual Returns Joint Returns
10% $0-7,000 $0-14,000
15% $7,001-28,400 $14,001-56,800
25% $28,401-68,800 $56,801-114,650
28% $68,801-143,500 $114,651-174,700
33% $143,501-311,950 $174,701-311,950
35% Over $311,950 Over $311,950
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