Question

Bill Campbell invested $3,400 and borrowed $3,400 to purchase shares in Kellogg. At the time of his investment, Kellogg stock was selling for $52 a share.

(a) If Bill paid a $55 commission, how many shares could he buy if he used his $3,400 and borrowed $3,400 on margin to buy Kellogg stock? (Round your answer to 2 decimal places.)

	Number of shares=

(b) Assuming Bill did use margin, paid a $91 total commission to sell his Kellogg stock, and sold his stock for $59 a share, how much profit did he make on his Kellogg investment? (Use the number of shares computed in part (a) rounded to 2 decimal places. Round your final answer to 2 decimal places.)

	Total profit after commissions=

Answer 1

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1 21 e 9 2 ENG V -D A praviti mardura 01.18 03 01 2020 - 6 E 20 x PE EPS, STOCK DIVIDEND (version 1).xlsb - Excel Tile Help Share Home Insert X Cut Copy. Format Painter Clipboard AutoSum - A Page Layout Formulas Data Calibri vu VAA B I U . . .A Font Review View = = = = = = Tell me wiat you want to do Wrap Text General Merge & Center. . . % Number Paste Insert Delete Format Conditional Format as Cell Formatting - Table- Styles styles Clear Sort & Find & Filter - Select Edeng Alignment HE53 HB HC Formula Bar HD НЕ HE HG 3400 3400 own funds = borrowed funds = less : commission net amount available 55 6745 52 price per share no of shares he can buy 44 answer 129.71 [6745/52] [net amount /price per share] 46 b price per share sale value of share = less : commission net realised amount profit = 59 7652.89 [129.71 shares x 59] 91 7561.89 (7652.89 - 91] 816.89 (7561.89-6745] answer ... STOK DIV NAV HEDGE FUND ME EV PEEPS DIV ABNORMAL deberk MARGIN MONEY marginal tax PB ROPI APV ROSS price quote | EVA MVA S... LEVERAGED BUY # Ready Circular References - + 140%