2) Andrew bought 10,000 shares of stock B at $2 per share. At the end of the year, he sold all the shares at$2.50 per share. The transactions payable for share transactions in Singapore are:Clearing feeTrading access feeBrokerage commission0.0325%0.0075%0.2800%In addition to the above cost, Andrew has to pay GST of 7% on the total transaction cost (i.e. sum of clearingfee, trading access fee and brokerage commission). Calculate Andrew's profits in dollars and return.

Ans.2) Number of shares in investment= 10,000 Purchase price per share = $2. Therefore, total value…

Answered: 2) Andrew bought 10,000 shares of stock…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at $33.10. Your broker charges 3% commission on round lots and 4% on odd lots. Calculate the gain or loss (in $) on the transaction. $_________
b. You bought 20 shares at P750.00 per share. The broker charged her a P150.00 commission. Find the cost of the stock.
3) A company entirely financed with equity has 1,800,000 shares outstanding and decides to issue new shares with subscription rights. The price of shares before the issuance was 42 euro, and the price at which the shares are issued is 38 euro. If the price after the share issuance is going to be 40 euro, determine the number of subscription rights that a shareholder needs to buy one new share in the issuance with subscription rights.
A year ago, Kim Altman purchased 190 shares of BLK, Inc. for $27.00 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 6 percent and she sold the stock for $35.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places. %
On 1 June, shares in Blue.com traded at $40.82. Your broker allowed you to buy the shares on margin with an initial margin of 60.00%. You bought as many shares as you could. The broker charged you no interest on the account. Now, Blue.com shares trade at $37.40. What was your holding period return from 1 June to today? -8.38% -13.41% -5.03% -13.96%
Kai has $25,000 in his margin account. His broker pays 1% (continuously compounded) interest on cash balances. Kai sells 100 shares of JASA short at $175 / share. The broker charges commission of $0.01 per share, and charges 0.25% (cont. compounded) interest on the value of the stock loan. How much cash is in Kai's account immediately after the short sale? a. $25,000 b. $17,499 c. $42,500 d. $42,499 e. $17,500
Jeff Sellers bought 200 shares of ATL stock at $29.38. Eight months later, he sold the stock at $31.63. Assuming a 2% commission charge, what is the bottom line for Jeff? (Round your answer to the nearest cent.)
An investor exercises his right to buy one additional share at $35 for every 4 shares held. How much should each share be worth after the rights issue if they previously sold for $70 each?
Answer the following problems with a complete solution. a. Find the 5% commission on the total sales of P20,000.00 b. You bought 20 shares at P750.00 per share. The broker charged her a P150.00 commission. Find the cost of the stock.c. You own 105 shares, par value P200.00. If the corporation declares an 8% dividend, what is the total dividend that should get? d. You bought ten P750.00 bonds at 315 plus a 6% brokerage fee. Find the investment.
At your full-service brokerage firm, it costs $125 per stock trade. How much money do you receive after selling 200 shares of Time Warner, Inc. (TMX), which trades at $29.54?
Identify which of the following transaction is a primary market transaction or a secondary market transaction. Explain your answer. Michael bought 2,000 units of KSD shares at RM2.35 per share when KSD shares made an initial public offering of 20,000,000 shares in the market. Razif bought 1,000 units of LOL shares at RM 1.30 per share in the stock market.
For the current year, Spiderman Company received a donation of 3,000 shares with a par value of P20 from the shareholder. The market value of the share was P150. The shares were originally issued P50 per share. As a result of the donation, what was the decrease in the shareholder’s equity?

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