Question

trans union corporation issued 5,600 shares for $50 per share in the current year, and it issued 10,600 shares for $37 per share in the following year. the year after that, the company reacquired 20,600 shares of its own stock for $45 per share. determine the impact (increase, decrease, or no change) of each of these transactions on the following classifications:

Answer 1

To calculate net profit from stock transactions, subtract the purchase costs plus transaction fees from the sales revenue minus the selling fees. For example, purchasing 1000 shares of Nike at $24.50 and selling at $39.75 with a transaction fee of $9.99, the net profit would be $15,230.02.

Step-by-step explanation:

The question involves calculating the net profit from stock transactions in a business context. To find the net profit, you need to subtract the total cost of purchasing the shares, including any transaction fees, from the total revenue obtained from selling those shares at the current market price minus the selling transaction fees.

For example, if you purchased 1000 shares of Nike at $24.50 per share and the current price of the stock is $39.75 per share, with a stock company charging $9.99 per transaction, your net profit is calculated as follows:

1. Calculate initial investment: 1000 shares × $24.50/share + $9.99 = $24,509.99
2. Calculate revenue from selling: 1000 shares × $39.75/share - $9.99 = $39,740.01
3. Calculate net profit: $39,740.01 - $24,509.99 = $15,230.02

This process would be repeated for each stock purchase mentioned (Panda Express and Wal-Mart), with their respective purchase and selling prices, to determine the net profit from each transaction.