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
110 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)
Math Question: Solve the inequality -3x + 5 > 14 for x in the real number system.
+
What is the median of a set with an odd number of values greater than or equal to 0 but less than 10?
+
What is the value of the sine ratio when the opposite side is 5 units and the hypotenuse is 13 units?
+
New questions in Mathematics
A particular employee arrives at work sometime between 8:00 a.m. and 8:50 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 8:50 a.m. Find the probability that the employee will arrive between 8:05 a.m. and 8:40 a.m. Round your answer to four decimal places, if necessary.
11(4x-9)= -319
8x-(5-x)
x/20*100
(-5/6)-(-5/4)
Estimate the quotient for 3.24 ÷ 82
X~N(2.6,1.44). find the P(X<3.1)
ind the z-score for which 72% of the distribution's area lies between -z and z. -1.7417, 1.7417 -1.1538, 1.1538 -1.0803, 1.0803 -2.826, 2.826
Your grandfather has run a small high street pharmacy for 40 years. After much persuasion, he has agreed to open a digital store online. List 5 potential ways to improve sales and/or margins by having a digital pharmacy through the utilisation of historic or new sales data.
Let f and g be defined in R and suppose that there exists M > 0 such that |f(x) − f(p)| ≤ M|g(x) − g(p)|, for all x. Prove that if g is continuous in p, then f will also be continuous in p.
48 kg of 30% sulfuric acid in a mixture of 10% and 40% sulfuric acid arose. How many kilograms were each of the original solutions?
nI Exercises 65-68, the latitudes of a pair of cities are given. Assume that one city si directly south of the other and that the earth is a perfect sphere of radius 4000 miles. Use the arc length formula in terms of degrees to find the distance between the two cities. 65. The North Pole: latitude 90° north Springfield, Illinois: latitude 40° north
Determine the kinetic energy of a baseball whose mass is 100 grams and has a speed of 30 m/s.
Kayla started a book club at her school. The number of girls in the book club was one more than twice the number of boys. If there are 15 girls in the book club, how many boys are in the club?
How many digits are there in Hindu-Arabic form of numeral 26 × 1011
8(x+4) -4=4x-1
3(x-4)=156
2p-6=8+5(p+9)
The length of a rectangle is five more than its width. if the perimeter is 120, find both the length and the width.
Exercise The temperature T in degrees Celsius of a chemical reaction is given as a function of time t, expressed in minutes, by the function defined on ¿ by: T (t )=(20 t +10)e−0.5t. 1) What is the initial temperature? 2) Show that T' (t )=(−10 t +15)e−0 .5t. 3) Study the sign of T' (t ), then draw up the table of variations of T . We do not ask for the limit of T in +∞. 4) What is the maximum temperature reached by the reaction chemical. We will give an approximate value to within 10−2. 5) After how long does the temperature T go back down to its initial value? We will give an approximate value of this time in minutes and seconds. DM 2: study of a function Exercise The temperature T in degrees Celsius of a chemical reaction is given as a function of time t, expressed in minutes, by the function defined on ¿ by: T (t )=(20 t +10)e−0.5t. 1) What is the initial temperature? 2) Show that T' (t )=(−10 t +15)e−0.5 t. 3) Study the sign of T' (t ), then draw up the table of variations of T . We do not ask for the limit of T in +∞. 4) What is the maximum temperature reached by the reaction chemical. We will give an approximate value to within 10−2. 5) After how long does the temperature T go back down to its initial value? We will give an approximate value of this time in minutes and seconds.