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Find the total amount received for an automated phone sale of 790 shares of AT&T stock at $24.48 per share through Firm B. The SEC fee as of 2/21 is $5.10/1,000,000, round up to the next penny. (Note: this is a HUGE decrease from the previous fee of $22.10/1,000,000! Which is what is used in the notes.) Review stock purchases and sales here. Brokerage Firm A Brokerage Firm B Brokerage Firm C O Amount received: $19,247.26 O Amount received: $19,326.15 O Amount received: $17,836.55 O Amount received: $19,352.25 Automated (online) $0 $0 $0 Automated (phone) $12.95 $12.95 $5 Broker-Assisted $25 $32.95 $25

Find the total amount received for an automated phone sale of 790 shares of AT&T stock at $24.48 per share through Firm B. The SEC fee as of 2/21 is $5.10/1,000,000, round up to the next penny. (Note: this is a HUGE decrease from the previous fee of $22.10/1,000,000! Which is what is used in the notes.) Review stock purchases and sales here. Brokerage Firm A Brokerage Firm B Brokerage Firm C O Amount received: $19,247.26 O Amount received: $19,326.15 O Amount received: $17,836.55 O Amount received: $19,352.25 Automated (online) $0 $0 $0 Automated (phone) $12.95 $12.95 $5 Broker-Assisted $25 $32.95 $25

Essentials Of Investments
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
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**Understanding Brokerage Fees and Calculating Earnings from Stock Sales** To determine the total amount received from an automated phone sale of 790 shares of AT&T stock at $24.48 per share through Brokerage Firm B, it's important to consider various fees, including brokerage fees and the SEC fee. ### Key Information: - **Shares Sold:** 790 shares of AT&T - **Price per Share:** $24.48 - **SEC Fee:** As of 2/21, the SEC fee is $5.10 per $1,000,000, rounded up to the next penny. Previously, it was $22.10 per $1,000,000. ### Brokerage Fees Table: The table below outlines the fee structures for different brokerage firms and transaction methods: | Brokerage Firm | Automated (online) | Automated (phone) | Broker-Assisted | |----------------|---------------------|-------------------|-----------------| | Firm A | $0 | $12.95 | $25 | | Firm B | $0 | $12.95 | $32.95 | | Firm C | $0 | $5 | $25 | ### Calculation: 1. **Total Sale Amount:** - **Shares Sold:** 790 - **Price per Share:** $24.48 - **Total Sale:** 790 shares * $24.48/share = $19,339.20 2. **Brokerage Fee for Firm B (Automated Phone):** - **Fee:** $12.95 3. **SEC Fee Calculation:** - **Rate:** $5.10 per $1,000,000 - **Amount:** $19,339.20 * ($5.10 / $1,000,000) = $0.09863 (rounded up to $0.10) 4. **Total Fees:** - **Brokerage Fee:** $12.95 - **SEC Fee:** $0.10 - **Total Fees:** $13.05 5. **Total Amount Received:** - **Total Sale:** $19,339.20 - **Less Fees:** $13.05 - **Net Amount:** $19,339.20 - $13.05 = $19,326.15 ### Possible Answers: - Amount received: $19,247.26
Transcribed Image Text:**Understanding Brokerage Fees and Calculating Earnings from Stock Sales** To determine the total amount received from an automated phone sale of 790 shares of AT&T stock at $24.48 per share through Brokerage Firm B, it's important to consider various fees, including brokerage fees and the SEC fee. ### Key Information: - **Shares Sold:** 790 shares of AT&T - **Price per Share:** $24.48 - **SEC Fee:** As of 2/21, the SEC fee is $5.10 per $1,000,000, rounded up to the next penny. Previously, it was $22.10 per $1,000,000. ### Brokerage Fees Table: The table below outlines the fee structures for different brokerage firms and transaction methods: | Brokerage Firm | Automated (online) | Automated (phone) | Broker-Assisted | |----------------|---------------------|-------------------|-----------------| | Firm A | $0 | $12.95 | $25 | | Firm B | $0 | $12.95 | $32.95 | | Firm C | $0 | $5 | $25 | ### Calculation: 1. **Total Sale Amount:** - **Shares Sold:** 790 - **Price per Share:** $24.48 - **Total Sale:** 790 shares * $24.48/share = $19,339.20 2. **Brokerage Fee for Firm B (Automated Phone):** - **Fee:** $12.95 3. **SEC Fee Calculation:** - **Rate:** $5.10 per $1,000,000 - **Amount:** $19,339.20 * ($5.10 / $1,000,000) = $0.09863 (rounded up to $0.10) 4. **Total Fees:** - **Brokerage Fee:** $12.95 - **SEC Fee:** $0.10 - **Total Fees:** $13.05 5. **Total Amount Received:** - **Total Sale:** $19,339.20 - **Less Fees:** $13.05 - **Net Amount:** $19,339.20 - $13.05 = $19,326.15 ### Possible Answers: - Amount received: $19,247.26
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