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Question - Bill Campbell invested $3,300 and borrowed $3,300 to purchase shares in Kellogg. At the time of his investment, Kellogg stock was selling for $51 a share.
(a) If Bill paid a $56 commission, how many shares could he buy if he used his $3,300 and borrowed $3,300 on margin to buy Kellogg stock?
(b) Ignoring buying commission, Assuming Bill did use margin, paid a $98 total commission to sell his Kellogg stock, and sold his stock for $57 a share, how much profit did he make on his Kellogg investment?
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