Question

Jo Bower owns 150 shares of Data General stock. She purchased the stock for $24 a share. She sold her stock for $30 a share. The commissions required to buy and sell her stock totaled $120. Assuming that she received no dividends during the time she owned the stock, what is her total return for this transaction? A. $600 B. $780 C. $900 D. $2,400

Answer 1

$780.

Explanation:

Jo Bower owns 150 shares of Data General stock.

She purchased the stock for $24 a share.

So, cost of purchasing 150 shares =
`150* 24`

=
`3600`

She sold her stock for $30 a share.

So. she sold 150 shares of amount =
`150* 30`

=
`4500`

So, Profit = SP-CP

Profit = $4500-$3600

Profit = $900

The commissions required to buy and sell her stock totaled $120.

So, her total return for this transaction = 900-120

=780

Hence, Her total return for this transaction is $780.

Answer 2

Her expenses:
($24 x 150) + $120 = $3,600 + $120 = $3,720
Her profit:
$30 x 150 = $4,500
Total profit:
$4,500 - $3,720 = $780
Answer: B ) $780