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PLEASE HELP!!!

I don't understand how to work this out...
if possible, please explain how you got your answer. It would be very helpful.

Thanks!!​

PLEASE HELP!!! I don't understand how to work this out... if possible, please explain-example-1
User Engelen
by
5.1k points

1 Answer

7 votes

9514 1404 393

Answer:

17.3%

Explanation:

The rate of return is the net profit divided by the purchase price.

The purchase price was ...

(20 share) × ($30/share) = $600

The net proceeds from the sale were ...

proceeds = selling price - commission

= $710 -$6 = $704

So, the net profit is ...

profit = $704 -600 = $104

And the rate of return is ...

profit / investment = $104/$600 = 17.3%

User Ha Dang
by
5.7k points