Question

(12 points)

Answer 1

Step-by-step explanation:

a.)Buying: total cost

Total cost= commission + (price per share× Number of of shares ) ;

Total cost= 11 + (19.72×30)= $591.6+11= $601.6

b.)Net gain or loss;

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

Cash from sale =20.75×30= $ 622.5

deduct commission= 622.5-11= $611.5

Gain or loss= sale-cost = 611.5-601.6 = $9.9, meaning there is a profit.

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

return= 9.9/(601.6)×100 = 1.645%