Question: The Barryman Drilling Company is planning on repurchasing 1 million
The Barryman Drilling Company is planning on repurchasing $1 million worth of the company’s 500,000 shares of stock, which is currently trading at a price of $10 per share. Stan Barryman is the founder of the company and still holds 10,000 shares of company stock that he originally purchased for $8 per share. If Stan decides to sell 2,000 of his shares for $10 a share, what will be his after-tax proceeds where capital gains are taxed at 15 percent?
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