# (Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing \$1.08 million worth of the company's 450,000 shares of stock, which is currently trading at a price of \$10.83 per share.Stan Barryman is the founder of the company and still holds 19,000 shares of company stock that he originally purchased for \$8.32 per share. If Stan decides to sell 2,100 of his shares for \$10.83 a share, what will behis after-tax proceeds where capital gains are taxed at 15 percent?Stan's after-tax proceeds from the sale are \$. (Round to the nearest dollar.)

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Step 1

Capital gains on the sale of asset held for more than a year is the difference in the value of the stock now and value of the stock when bought.

Step 2

Price of the stock when bought (P1) = \$8.32

Number of stocks to be sold (n) = 2100

Price now (P2) = \$10.83

Capital gains can be calculated as below

Step 3

After tax proceed is cal...

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