Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wanda Sotheby purchased 215 shares of Home Depot stock at $45 a share. One year later, she sold the stock for $53 a share. She

Wanda Sotheby purchased 215 shares of Home Depot stock at $45 a share. One year later, she sold the stock for $53 a share. She paid her broker a commission of $53 when she purchased the stock and a commission of $60 when she sold it. During the 12 months she owned the stock, she received $156 in dividends. Calculate Wandas total return on this investment. (A loss should be indicated by a minus sign.)

P.S! the answer is not 18 and I have been unable to get a negative answer as the problem requires.

Number of shares-215

Price per share-$45

Sales Price-$53

Brokerage on purchase-$53

Brokerage on sale-$60

156 dividends

(215*45)+53=$9,728

(215*53)-60=11,335

11,335-9728+156/11,335= .15.55=15.55%

Also it is not 18.73%

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

Step: 3

blur-text-image

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

Finance Introduction To Institutions Investments And Management

Authors: Ronald W. Melicher, Edgar A. Norton

12th Edition

0471675792, 9780471675792

More Books

Students also viewed these Finance questions

Question

Please give an example of integer programming.

Answered: 1 week ago