Amarjit was preparing his annual tax return when he noticed that he had a $28 500 unused RRSP contribution limit. Through discussion with his financial advisor, Amarjit realized that he had not fully contributed to his RRSP in past years.
The advisor suggested that Amarjit borrow funds through an RRSP loan to take advantage of his unused contribution limit, as she believed that his RRSP's growth rate would be higher than the interest paid on the loan. The advisor knew of a bank making RRSP loans at a simple interest rate of 4.75% with four end-of-year principal payments required of $7125 each.
Amarjit agreed to this idea, and contemplated being more aggressive with his investments. He asked his advisor to discuss investments in the stock market.
The advisor suggested to him that while investing in the stock market had the potential for higher gains, there was also the possibility of losing money. Investing in equities (stocks) was riskier than his current conservative portfolio of bank savings accounts, treasury bills, and guaranteed investment certificates (GICs).
Details of several leading Canadian companies were provided to Amarjit to consider investing in:

Questions
1. How many shares of each stock would he get if he used the $28 500 and invested equally in all four companies?
2. Suppose Amarjit decided to buy shares in only TELUS and Goldcorp. How many shares of each would he get if he used the $28 500 and bought three times as many shares of TELUS as he bought of Goldcorp?
3. Suppose Amarjit decided to buy shares in only International Forest Products and the Bank of Montreal. How many shares of each company would he get if he used the $28 500 and bought two shares of the Bank of Montreal for every three shares of International Forest Products?

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Latest Selling Price per Share $34.76 $64.92 $7.85 $60.64 52-Week High/Low Price $50.17/$32.34 $65.96/$55.19 $7.89/$3.75 $61.29/$53.15 Company Goldcorp TELUS International Forest Products Bank of Montreal