Question: Please help with the 2 and 3 1. Return on Stock. Sam purchased 8000 shares of stock for $26 per share. During the year, he
1. Return on Stock. Sam purchased 8000 shares of stock for $26 per share. During the year, he received dividend checks amounting to $400. Sam recently sold the stock for $32 per share. What was Sam's return on the stock? 2. Dollar Amount of Return. What is the dollar amount of Sam's return (see problem 1)? 3. Capital Gains Tax. Sarn (from problem 1) is in the 25% tax bracket, what amount of taxes will he pay on his capital gain if he held the stock for less than a year? Hint: Don't include the dividends in the capital gains tax. They're taxed at a different rate
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