Question

PLEASE PLEASE PLEASE PLEASE PLEASE OPEN AND CORRECT MY WORK....THANKS....Tom bought 750 shares of a company's stock for $11.06/shares. he pays a broker a commission of $12 to buy and sell stocks after one year tom sold all his shares when they were worth $10.24/shares (A) how much did it cost tom to buy the stock? (B) what was Tom's net gain or loss? (C) what was Tom's annual rate of return?​
Sorry the first page is the other half of my question I'm not worried about that one

Answer 1

Answer:

-7.692%

Step-by-step explanation:

a.)Buying: total cost

Total cost= commission + (price per share* # of shares ) ;

Total cost= 12 + (11.06*750)= 12+8295 = $8,307

b.)Net gain or loss;

First, find cash received from sale of stock and deduct commission;

Cash from sale =10.24 * 750= 7,680

deduct commission= 7680-12= $7,668

Gain or loss= sale-cost = 7668-8307 = -$639, meaning there is a loss.

c.) Annual rate of return= (net gain or loss/amount paid)*100%

return= -639/(8307)*100 = -7.692%