Abby purchased 100 shares of her father's favorite stock for $26 per share exactly 1 year ago, commission free. She sold it today for a total amount of $3275. She plans to invest the entire amount in a different corporation's stock today, but she must now pay a $15 commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax effects. The total amount that she receives next year (in $)
Abby purchased 100 shares of her father's favorite stock for $26 per share exactly 1 year ago, commission free. She sold it today for a total amount of $3275. She plans to invest the entire amount in a different corporation's stock today, but she must now pay a $15 commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax effects. The total amount that she receives next year (in $)
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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Transcribed Image Text:Abby purchased 100 shares of her father's favorite stock for $26 per share exactly 1 year ago, commission free. She sold it today for
a total amount of $3275. She plans to invest the entire amount in a different corporation's stock today, but she must now pay a $15
commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what
must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax
effects.
The total amount that she receives next year (in $)
Round off to the nearest two (2) decimal places
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