Sheet1 Amount to be raised$ 15,000,000.00 stock Price$ XXXXXXXXXX Number of shares = XXXXXXXXXX Share price after commission$ XXXXXXXXXX Expenses =$ 252,000.00 Share capital raised = XXXXXXXXXX...

6-3:
Given Data:
    Particulars
    Amount
    Number of Shares Purchased
    100
    Purchase Price per Share
    35
    Total Purchase consideration
    3500
    
    
    Taxable Income
    75000
(a). Since the shares are held by Deanna Watson for a period of less than 1 year, hence the gain on selling the shares is a short-term gain. Short-term gain is taxable at the rate at which the normal income is taxable. Since her normal taxable income is $75000, the rate of tax applicable to her is 22%. Hence the tax liability will be as under:
    Sale Consideration (100x40)
    4000
    Less: Purchase Consideration
    -3500
    
    
    Gain
    7500
    Tax Rate
    22%
    Tax on Gain
    1650
(b). Since the shares are held by Deanna Watson for a period of more than 12 months, hence the gain is long-term gain....