Question 1 (Total marks for this question = 5 marks)
Suppose you bought shares in a listed company on the Australian stock market in March 2009
for $10,000, and you sold these shares for $15,000 in March 2012.
(a) What is the assessable capital gain f
Question 1 (Total marks for this question = 6 marks)
Suppose you take out a loan of $10,000, repayable by five equal annual instalments. The
interest rate is 10% per year.
(a) How much do you need to repay per year to the nearest cent if payments ar
QUESTION 1 [Total 5 marks]
(a) Explain what is meant by the market capitalisation of a listed company. How would
you find the market capitalisation of a listed company?
(b) If a company has 10,000,000 ordinary shares on issue with a
(a) Assessable capital gain = $15,000 - $10,000 = $5,000
(b) In Australia, a 50% discount applies for capital gains.
Net assessable capital gain = Assessable capital gain x (1 C 0.5) = $5,000 x 0.5 = $2,500
(c) Tax payable = Ne