How share buy-backs differ from dividends: You purchased 3,000 shares of Space Paranormal Co. four years ago at $40 per share You have just received a mailing from the company announcing a share buy-back at $70 per share. Capital gains are taxed at 20 per cent. If you participate in the buy-back, how much will you receive?
A) $72,000
B) $192,000
C) $186,000
D) $210,000

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The Answer of How share buy-backs differ from dividends: You purchased 3,000 shares of Space Paranormal Co. four years ago at $40 per share You have just received a mailing from the company announcing a share buy-back at $70 per share. Capital gains are taxed at 20 per cent. If you participate in the buy-back, how much will you receive?
A) $72,000
B) $192,000
C) $186,000
D) $210,000

How Share Buy-Backs Differ from Dividends: You Purchased 3,000 Shares