How much profit did make on verizon stock investment

Assignment Help Finance Basics
Reference no: EM131947168

Question: Bob Orleans invested $5,000 and borrowed $5,000 to purchase shares in Verizon Communications. At the time of his investment, Verizon was selling for $15 a share.

a. If Bob paid a $20 commission, how many shares could he buy if he used only his own money and did not use margin? Number of shares

b. If Bob paid a $40 commission, how many shares could he buy if he used his $5,000 and borrowed $5,000 on margin to buy Verizon stock? Number of shares

c. Assuming Bob did use margin, paid a $40 total commission to buy his Verizon stock and another $40 to sell his stock, and sold the stock for $24 a share, how much profit did he make on his Verizon stock investment? Profit $

Reference no: EM131947168

Questions Cloud

Discuss about the contractual nature of the events : If yes, how and when did the offer, acceptance, consideration, etc occur? Other observations or comments about the contractual nature of these events?
What is its present value : If other investments of equal risk or an 8% annually, what is its present value.
What is the percentage cost of trade credit : What is the days' sale outstanding? Determine the average amount of receivables. what is the percentage cost of trade credit?
Find what is the market-to-book ratio : Bogus Goods Corp. has additions to retained earnings for the year just ended of $350,000. The firm paid out $160,000 in cash dividends.
How much profit did make on verizon stock investment : Assuming Bob did use margin, paid a $40 total commission to buy his Verizon stock and another $40 to sell his stock, and sold the stock for $24 a share.
Determine costs of internal and external equity : Determine the costs of internal and external equity to Tony Company’s. Show work.
Calculate the value of the debt and the share price : Calculate the value of the debt, the share price, and the price of the warrant.
Net operating profit margin : The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, Walt Disney’s 2016 net operating profit margin is:
Compute the total amount pay for the loan : "Bob Pearson borrowed $30,000 from a bank at an interest rate of 9% compounded monthly. The loan will be repaid in 36 equal monthly installments over three year

Reviews

Write a Review

Finance Basics Questions & Answers

  What will your annual loan payment be

Required: What will your annual loan payment be? (Do not round your intermediate calculations.)

  What is a cost-volume-profit analysis

The Housekeeping Service department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs in 2007. What is a cost-volume-profit (CVP) analysis and why is it useful to health services managers

  Determine percentage change in the purchasing power

A 20 year U.S. Government bond with a 10% annual coupon rate sells at $1,000 when prevailing interest rates on comparable securities are 10%.

  Draw six mean-standard deviation diagrams

Draw six mean-standard deviation diagrams, one for each of the six remaining pairs of subsidiaries in exercise 4.15. Mark the individual subsidiaries, the minimum variance combination assuming no short sales, and ABCO's return variance for a 50/50..

  Calculate the cost of capital for debt preferred stock

because of the increased demand for its product west inc. is in the process of expanding the production capacity.

  Discuss the power drive transactions

Refer to the information in E10-9. Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2012.

  Identify account that would typically found on balance sheet

Identify one account that would typically be found on a balance sheet, and one account that would typically be found on an income statement, and define them.

  Calculate the cash inflow for the months of april and may

The following information is available regarding sales revenue for March, April, and May, Year 0008: Credit card sales revenue is collected on the average.

  Compare the competitive price charged and quantity produced

a compare the competitive price charged and quantity produced under perfect competition and monopoly. other than

  What would your total balance available at end of five years

Determine at an interest rate of 3%, what would be your total balance available at the end of five years if you leave the $5,000 untouched.

  Create list of actions the company you researched could take

Create a list of actions the company you researched could take to mitigate the negative effects of operating in a segmented capital market. Explain your rationale.

  Prepare the trial balance of the business firm

find a series of accounts that represent the trial balance of the business firm. These accounts encompass both income statement and balance sheet accounts.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd