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)
Question: What is the derivative of y = sin(2x)cos(3x) with respect to x?Answer: The derivative of y = sin(2x)cos(3x) is dy/dx = 2cos(2x)cos(3x) - 3sin(2x)sin(3x)
+
Question: Evaluate the square root of 289 and round it to the nearest tenth.
+
What is the volume of a cylinder, with radius 4 cm and height 10 cm?
+
New questions in Mathematics
Let 𝑢 = 𝑓(𝑥, 𝑦) = (𝑒^𝑥)𝑠𝑒𝑛(3𝑦). Check if 9((𝜕^2) u / 𝜕(𝑥^2)) +((𝜕^2) 𝑢 / 𝜕(𝑦^2)) = 0
The time it takes for a person to travel 300 m is 15 minutes. What is their speed in meters per second?
10.Silvana must knit a blanket in 9 days. Knitting 8 hours a day, at the end of the fifth day, only 2/5 of the blanket was done. To be able to finish on time, how many hours will Silvana have to knit per day?
How many percent is one second out a 24 hour?
what is 3% of 105?
1 plus 1
(2x+5)^3+(x-3)(x+3)
4. Show that if n is any integer, then n^2 3n 5 is an odd integer
2x+4x=
find f(x) for f'(x)=3x+7
Two business partners have a bank balance of $17,942.00. After the first year their interest brings their balance to $18,928.91. What rate of interest is earned?
4+168×10³×d1+36×10³×d2=-12 -10+36×10³×d1+72×10³×d2=0
Fill in the P(X-x) values to give a legitimate probability distribution for the discrete random variable X, whose possible values are -5 ,3 , 4, 5 , and 6.
Write an expression using compatible numbers that can be used to estimate the quotient 629\86
Find sup { x∈R, x²+3<4x }. Justify the answer
X^X =49 X=?
a) 6x − 5 > x + 20
Solve the following 9x - 9 - 6x = 5 + 8x - 9
Sodium 38.15 38.78 38.5 38.65 38.79 38.89 38.57 38.59 38.59 38.8 38.63 38.43 38.56 38.46 38.79 38.42 38.74 39.12 38.5 38.42 38.57 38.37 38.71 38.71 38.4 38.56 38.39 38.34 39.04 38.8 A supplier of bottled mineral water claims that his supply of water has an average sodium content of 36.6 mg/L. The boxplot below is of the sodium contents levels taken from a random sample of 30 bottles. With this data investigate the claim using SPSS to apply the appropriate test. Download the data and transfer it into SPSS. Check that your data transfer has been successful by obtaining the Std. Error of the mean for your data which should appear in SPSS output as 0.03900.. If you do not have this exact value, then you may have not transferred your data from the Excel file to SPSS correctly. Do not continue with the test until your value agrees as otherwise you may not have correct answers. Unless otherwise directed you should report all numeric values to the accuracy displayed in the SPSS output that is supplied when your data has been transferred correctly. In the following questions, all statistical tests should be carried out at the 0.05 significance level. Sample mean and median Complete the following concerning the mean and median of the data. mean =  mg/L 95% CI:  to  mg/L Based upon the 95% confidence interval, is it plausible that the average sodium content is 36.9 mg/L?      median:  mg/L The median value is      36.9 mg/L. Skewness Complete the following concerning the skewness of the data. Skewness statistic =        Std. Error =  The absolute value of the skewness statistic     less than 2 x Std. Error Therefore the data can be considered to come from a population that is      . Normality test Complete the following summary concerning the formal testing of the normality of the data. H0: The data come from a population that     normal H1: The data come from a population that     normal Application of the Shapiro-Wilk test indicated that the normality assumption     reasonable for sodium content (S-W(  )=  , p=   ). Main test Using the guidelines you have been taught that consider sample size, skewness and normality, choose and report the appropriate main test from the following ( Appropriate ONE ) You have selected that you wish to report the one-sample t-test. H0: The mean sodium content     equal to 36.9 mg/L H1: The mean sodium content     equal to 36.9 mg/L Application of the one-sample t-test indicated that the mean is      36.9 mg/L (t(  ) =  , p =   ). You have selected that you wish to report the Wilcoxon signed rank test. H0: The median sodium content     equal to 36.9 mg/L H1: The median sodium content     equal to 36.9 mg/L Application of the Wilcoxon signed rank test indicated that the median is      36.9 mg/L (z =  , N =  , p =   ).
How many digits are there in Hindu-Arabic form of numeral 26 × 1011