Bill Campbell invested $5,300 and borrowed $5,300 to purchase shares in Kellogg. At the time of his investment, Kellogg stock was selling for $53 a share. Note: There were no commissions to buy or sell this stock. a. How many shares could he buy if he used his $5,300 and borrowed $5,300 on margin to buy Kellogg stock? Note: Round up your final answer to the nearest whole unit. b. Assuming Bill did use margin, sold his Kellogg stock $58 a share, how much profit did he make on his Kellogg investment? Note: Round up your intermediate value of "Total shares" to the nearest whole unit. Round your final answer to 2 decimal places. a. Number of shares b. Total profit 200✔ $ 5,876.00

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
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I do not understand why my total profit box is marked wrong here

Bill Campbell invested $5,300 and borrowed $5,300 to purchase shares in Kellogg. At the time of his investment, Kellogg stock was
selling for $53 a share. Note: There were no commissions to buy or sell this stock.
a. How many shares could he buy if he used his $5,300 and borrowed $5,300 on margin to buy Kellogg stock?
Note: Round up your final answer to the nearest whole unit.
b. Assuming Bill did use margin, sold his Kellogg stock $58 a share, how much profit did he make on his Kellogg investment?
Note: Round up your intermediate value of "Total shares" to the nearest whole unit. Round your final answer to 2 decimal
places.
a. Number of shares
b. Total profit
200
$ 5,876.00
Transcribed Image Text:Bill Campbell invested $5,300 and borrowed $5,300 to purchase shares in Kellogg. At the time of his investment, Kellogg stock was selling for $53 a share. Note: There were no commissions to buy or sell this stock. a. How many shares could he buy if he used his $5,300 and borrowed $5,300 on margin to buy Kellogg stock? Note: Round up your final answer to the nearest whole unit. b. Assuming Bill did use margin, sold his Kellogg stock $58 a share, how much profit did he make on his Kellogg investment? Note: Round up your intermediate value of "Total shares" to the nearest whole unit. Round your final answer to 2 decimal places. a. Number of shares b. Total profit 200 $ 5,876.00
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