Question

A hobbyist buys 300 Kone shares at a price of €30/piece. The share pays a dividend of €1/share first and €1.15/share the following year. The hobbyist sells the shares for €37/share. Calculate the hobbyist's return when a 0.2% trading fee is charged for buying and selling stocks. A 30% tax is paid on capital income and 30% is tax-free on dividends.

90

likes
449 views

Answer to a math question A hobbyist buys 300 Kone shares at a price of €30/piece. The share pays a dividend of €1/share first and €1.15/share the following year. The hobbyist sells the shares for €37/share. Calculate the hobbyist's return when a 0.2% trading fee is charged for buying and selling stocks. A 30% tax is paid on capital income and 30% is tax-free on dividends.

Expert avatar
Rasheed
4.7
109 Answers
"To calculate the hobbyist's total return, we need to account for the initial purchase, the dividends received in two years, the sale of the shares, trading fees, and taxes on both capital gains and dividends. Here's how to break it down:

1. **Initial Purchase:**
- The hobbyist buys 300 shares at €30 each.
- There's a 0.2% trading fee for buying.

The total cost of purchasing 300 shares at €30 each with a 0.2% trading fee is:
300 \times 30 + 0.002(300 \times 30) = 9000 + 18 = 9018 \text{ euros}

2. **Dividends Received:**
- In the first year, a dividend of €1/share is received.
- In the second year, a dividend of €1.15/share is received.
- 30% of the dividends are tax-free, and the remaining 70% is taxed at 30%.

The net dividends received after taxes for the first and second years combined are:
300 \times (1 + 1.15) \times 0.3 = 509.55 \text{ euros}

3. **Sale of Shares:**
- The hobbyist sells the shares at €37 each.
- There's a 0.2% trading fee for selling.

The gross capital gain from selling the shares at €37 each (before taxes and selling trading fees) is:
300 \times (37 - 30) = 300 \times 7 = 2100 \text{ euros}

4. **Capital Gains Tax:**
- The difference between the sale price and the purchase price, minus the selling trading fee, is subject to a 30% capital gains tax.

The net capital gain, after accounting for the capital gains tax of 30% and the selling trading fee of 0.2%, is:
2100 - 30\% \times 2100 - 0.002 \times 2100 = 2100 - 630 - 4.2 = 1465.8 \text{ euros}

\textbf{Answer:} Thus, the hobbyist's total return on this investment, combining net capital gains and dividends after taxes, was approximately €1944.75.

Frequently asked questions (FAQs)
Question: How many ways can you arrange the letters "MATH" using permutations?
+
What is the formula for finding the area of a regular pentagon with side length 's'?
+
What is the sine of an angle with opposite side 9 and hypotenuse 15?
+
New questions in Mathematics
A particular employee arrives at work sometime between 8:00 a.m. and 8:40 a.m. Based on past experience the company has determined that the employee is equally likely to arrive at any time between 8:00 a.m. and 8:40 a.m. Find the probability that the employee will arrive between 8:05 a.m. and 8:30 a.m. Round your answer to four decimal places, if necessary.
Using a remarkable product you must factor the expression: f(x) =36x^2-324 and you are entitled to 5 steps
Solution of the equation y'' - y' -6y = 0
a ferry travels 1/6 of the distance between two ports in 3/7 hour. the ferry travels at a constant rate. at this rate, what fraction of the distance between the two ports can the ferry travel in one hour?
A college believes that 22% of applicants to that school have parents who have remarried. How large a sample is needed to estimate the true proportion of students who have parents who have remarried to within 5 percentage points?
5 squirrels were found to have an average weight of 9.3 ounces with a sample standard deviation is 1.1. Find the 95% confidence interval of the true mean weight
3(4x-1)-2(x+3)=7(x-1)+2
1 plus 1
Determine the momentum of a 20 kg body traveling at 20 m/s.
show step by step simplification: (¬𝑑∨((¬b∧c)∨(b∧¬c)))∧((𝑎 ∧ 𝑏) ∨ (¬𝑎 ∧ ¬𝑏))∧(¬𝑐∨((¬𝑑∧𝑎)∨(𝑑∧¬𝑎)))
The ninth term of a given geometric progression, with reason q , is 1792, and its fourth term is 56. Thus, calculate the fourth term of another geometric progression, whose ratio is q +1 and whose first term is equal to the first term of the first P.G. described.
Solve the following equation for x in exact form and then find the value to the nearest hundredths (make sure to show your work): 5e3x – 3 = 25
User One of the applications of the derivative of a function is its use in Physics, where a function that at every instant t associates the number s(t), this function s is called the clockwise function of the movement. By deriving the time function we obtain the velocity function at time t, denoted by v(t). A body has a time function that determines its position in meters at time t as S(t)=t.³√t+2.t . Present the speed of this body at time t = 8 s.
(2m+3)(4m+3)=0
On+January+10+2023+the+CONSTRUCTORA+DEL+ORIENTE+SAC+company+acquires+land+to+develop+a+real estate+project%2C+which+prev%C3% A9+enable+50+lots+for+commercial+use+valued+in+S%2F+50%2C000.00+each+one%2C+the+company+has+as+a+business+model+generate+ cash+flow+through%C3%A9s+of+the+rental%2C+so+47%2C+of+the+50+enabled+lots+are+planned to lease+47%2C+and+ the+rest+will be%C3%A1n+used+by+the+company+for+management%C3%B3n+and+land+control
The business college computing center wants to determine the proportion of business students who have personal computers (PC's) at home. If the proportion is greater than 35%, then the lab will modify a proposed enlargement of its facilities. Suppose a hypothesis test is conducted and the test statistic is z= 2.6. Find the P-value for this test.
Total Users with an active Wise account = Total Active Users + Total Users who haven’t transacted Total Active Users = Total MCA Users + Total Send Users = Total New Users + Retained Users Total New Users = New Send Users + New MCA Users Total MCA Users = New MCA Users + Retained Users who transacted this month via MCA Total Send Users = New Send Users + Retained Users who transacted this month via Send Send CR = Total Send Users / Total Users with an active Wise account MCA CR = Total MCA Users / Total Users with an active Wise account New Send CR = New Send Users / New Profiles Created in Month New MCA CR = New MCA Users / New Profiles Created in Month We have recently witnessed a drop in MCA conversion, but send user conversion is stable, can you help explain why?
Oi👋🏻 Toque em "Criar Nova Tarefa" para enviar seu problema de matemática. Um dos nossos especialistas começará a trabalhar nisso imediatamente!
0<x<2π aralığındaki f(x)=x÷2 fonksiyonunun 0 < x < 4π için grafiğini çiziniz ve 0<x<2n için Fourier seri dönüşümünü gerçekleştiriniz.
-1/3x+15=18