Question: Could you answer this question? I am having problems getting the correct answer AI Simpson helped start Excel Systems in 2010. At the time. he

 Could you answer this question? I am having problems getting the

Could you answer this question? I am having problems getting the correct answer

correct answer AI Simpson helped start Excel Systems in 2010. At the

AI Simpson helped start Excel Systems in 2010. At the time. he purchased 119,000 shares of stock at $1 per share. In 2015, he has the opportunity to sell his interest in the companyr to Folsom Corp. for $30 a share in cash. His capital gains tax rate would be 10 percent. a. If re sells his interest, what will be the value for before-tax profit, taxes, and aftertax prot? {Do not round Intermediate calculations. Round your final answers to the nearest dollar amount.) b. Assume. instead of cash. he accepts Folsom Corp. stock valued at $30 per share. He pays no tax at that time. He holds the stock for ve years and then sells it for $80.50 (the stock pays no cash dividends}. What will be the value for before-tax prot. taxes. and aftertax prot in 2020? His capital gains tax is once again 10 percent. {Do not round Intermediate calculations. Round your nal answers to the nearest dollar amount.) c. What is the present value (Year 2015) of the after-tax prot computed in Requirement b? Use a 10 percent discount rate. Use appendix B as an approximate answer. but calculate your nal answer using the formula and nancial calculator methods. {Do not round Intermediate calculations. Round your nal answer to the nearest dollar am ount} Afterlaxprot f

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