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Wanda Sotheby purchased 120 shares of Home Depot stock at $235 a share. One year later, she sold the stock for $218 a share. She
Wanda Sotheby purchased 120 shares of Home Depot stock at $235 a share. One year later, she sold the stock for $218 a share. She paid her broker a commission of $34 when she purchased the stock and a commission of $39 when she sold it. During the 12 months she owned the stock, she received $653 in dividends. Calculate Wanda's total return on this investment. (A loss should be indicated with a minus sign.) Total return Bob Orleans invested $3,000 and borrowed $3,000 to purchase shares in Verizon Communications. At the time of his investment, Verizon was selling for $60 a share. a. If Bob paid a commission of $20, how many shares could he buy if he used only his own money and did not use margin? (Round your answer to nearest whole number.) Number of shares b. If Bob paid a commission of $40, how many shares could he buy if he used his $3,000 and borrowed $3,000 on margin to buy Verizon stock? (Round your answer to nearest whole number.) Number of shares After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 250 shares of Valero Energy. At the time of the sale, a share of common stock had a value of $85. Three months later, Valero Energy is selling for $76 a share, and Sandra instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $26. What is her profit for this short transaction? Profit
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