User Account

All Pages

What is dianas after-tax net cash flow

Assignment Help Accounting Basics
Reference no: EM13518293

The 4,000 shares of Medco stock that Diana purchased 11½ months ago for $12 per share are now trading at $19 per share. Diana's regular marginal tax rate is 35 percent and her tax rate for long-term capital gains is 15 percent.

a. What is Diana's after-tax net cash flow if she sells the stock now?

b. What is Diana's after-tax net cash flow if she waits one month before selling the stock for $19 per share?

c. What do you recommend?

Reference no: EM13518293

Questions Cloud

Entire investment as a purchase of stock : What are the advantages and disadvantages of this structure as compared with treating the entire investment as a purchase of stock?
Calculate the charge on a second particle : A particle with a charge of +4.450e-3 C is placed on the y axis at y = 3.50 cm. Calculate the charge on a second particle
Evaluate monicos marginal tax rate next year : How would your answer change if Monicos marginal tax rate and how would your answer change if Monico's marginal tax rate next year is 34 percent
Estimate the amount of ice melted : Steam at 100°C is added to ice at 0°C. Find the amount of ice melted and the final temperature when the mass of steam is 14 g and the mass of ice is 54 g. g °C
What is dianas after-tax net cash flow : What is Dianas after-tax net cash flow if she sells the stock now and what is Diana's after-tax net cash flow if she waits one month before selling the stock for $19 per share?
Calculate the strength of the magnetic field : A uranium atom is ionized seven times, losing seven electrons in the process. what is the strength of the magnetic field
Explain kimos marginal tax rate : If it expects its marginal tax rate to be 25 percent next year, should it pay the expense this year or next? Use a 7 percent discount factor to explain your answer.
Find the direction of the acceleration of the electron : A television screen is illuminated using a beam of electrons traveling at 7.50×106 m/s in a 1.75×10?2 T magnetic field. find the direction of the acceleration of the electron
Define what is the ratio of the number of electrons : What is the ratio of the number of electrons for each atom of lead over one atom of aluminum

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd