Kiley received 200 Incentive Stock Options (ISOs), each option gives her the right to purchase a share
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Question:
Kiley received 200 Incentive Stock Options (ISOs), each option gives her the right to purchase a share of stock for $24 per share. Three years later, when the share price was $46 per share, she exercised all of her options. Assume Kiley holds the shares for two additional years and sells them when the market price is $120. How much tax will Kiley pay when she sells the shares, assuming her marginal tax rate is 37 percent and her preferential tax rate is 20 percent?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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