Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. bob orleans invested $3,000 and borrowed $3,000 to

Bob Orleans invested $3,000 and borrowed $3,000 to purchase shares in Verizon Communications. At the time...

70.2K

Verified Solution

Question

Finance

Bob Orleans invested $3,000 and borrowed $3,000 to purchaseshares in Verizon Communications. At the time of his investment,Verizon was selling for $16 a share.

a. If Bob paid a commission of $40, how manyshares could he buy if he used only his own money and didnot use margin?

b.  If Bob paid a commission of $80,how many shares could he buy if he used his $3,000 and borrowed$3,000 on margin to buy Verizon stock?

c. Assume Bob did use margin and paid acommission of $80 to buy his Verizon stock. Also, assume he paidanother $80 to sell his stock and sold the stock for $22 a share.How much profit did he make on his Verizon stock investment?(Use the rounded number of shares computed in part b. Roundyour answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
4.3 Ratings (963 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

The Clifford Corporation has announced a rights offer to raise $15 million for a new journal,...

Mechanical Engineering
1.2K views

The volume of a sphere is given by V = 4Ï€r3/3, where r is the...

Advance Math
1.2K views

1. A wholesale company has nine storage depots which it proposes to rationalize. Four depots, Q,...

Biology
1.2K views

Question 2 If the directions of the force applied on an object and the motion...

Geometry
1.2K views

Which describes a person designated to receive money from a life insurance policy or retirement...

Calculus
1.2K views

Integration by substitution is related to what differentiation method What type of integra Integration by...

Accounting
1.2K views

Es Co. produces a single product. Last year Es's net operating income under absorption costing...

Accounting
1.2K views

In September, Numbers Incorporated sold 48,000 units of its only product for $372,000,...

Accounting
1.2K views

Please help me with the general entry and balance sheet. Thanks! Important things...

Accounting
1.2K views

How are dividends treated in a double-entry system? A they are credited to...

Accounting
1.2K views

Tin Company and Aluminum Company reported the following information in their financial statements, prior to...

Accounting
1.2K views

What is the difference between Database Management System (DBMS) and Data base?