How much would save by holding the stock

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Point 1: Helen holds 2,900 shares of Fizbo Inc. stock that she purchased 11 months ago. The stock has done very well and has appreciated $12/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.

Question 1: If Helen's marginal tax rate is 35 percent, how much would she save by holding the stock an additional month before selling?

Reference no: EM132472782

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