Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor purchased 2000 shares of the stock of a company for GH5.00 per share with a brokerage commission of 2.5% on the value of

An investor purchased 2000 shares of the stock of a company for GH5.00 per share with a brokerage commission of 2.5% on the value of the stock. Since the investors equity of GH6000 was not enough to pay for the total investment, the broker provided the remainder of the needed funds as loans with interest rate at 15% per annum. In the course of the year the company paid a dividend of GH1.00 per share. If the investor sold the shares at the end of exactly one year for GH6.00 per share, calculate,

(a) The total funds borrowed by the investor

(b) commission paid on purchase and sale of shares (c) the investors rate of return

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamics Of International Finance

Authors: Ruchi Mehrotra Joshi

1st Edition

1685078389, 978-1685078386

More Books

Students also viewed these Finance questions

Question

Context free grammar is not closed under

Answered: 1 week ago

Question

HCI Evaluations involve which of the following?

Answered: 1 week ago

Question

2. How should this be dealt with by the organisation?

Answered: 1 week ago

Question

explain what is meant by the term fair dismissal

Answered: 1 week ago