Question

Use the information to answer these questions about buying and selling of stocks.

1. Purchased shares of stock: 1000 shares of Nike at $24.50 per share

Current price of stock: $39.75 per share

Stock companies price per transaction: $9.99

What is your net profit from each stock transaction?

2. Purchased shares of stock: 800 shares of Panda Express at $13.50 per share

Current price of stock: $23.25 per share

Stock companies price per transaction: $10

What is your net profit from each stock transaction?

3. Purchased shares of stock: 1200 shares of Wal Mart at $35.50 per share

Current price of stock: $58.75 per share

Stock companies price per transaction: $12.99

What is your net profit from each stock transaction?

Answer 1

Answer: Net profit from each stock transaction:

First, calculate the cost of purchasing the 1000 shares of Nike:

1000 shares x $24.50 per share = $24,500

Then, calculate the revenue from selling the 1000 shares of Nike:

1000 shares x $39.75 per share = $39,750

The total cost of the stock transaction is:

$24,500 + $9.99 = $24,509.99

The total revenue from the stock transaction is:

$39,750 - $9.99 = $39,740.01

Therefore, the net profit from each stock transaction is:

$39,740.01 - $24,509.99 = $15,230.02

Net profit from each stock transaction:

First, calculate the cost of purchasing the 800 shares of Panda Express:

800 shares x $13.50 per share = $10,800

Then, calculate the revenue from selling the 800 shares of Panda Express:

800 shares x $23.25 per share = $18,600

The total cost of the stock transaction is:

$10,800 + $10 = $10,810

The total revenue from the stock transaction is:

$18,600 - $10 = $18,590

Therefore, the net profit from each stock transaction is:

$18,590 - $10,810 = $7,780

Net profit from each stock transaction:

First, calculate the cost of purchasing the 1200 shares of Wal Mart:

1200 shares x $35.50 per share = $42,600

Then, calculate the revenue from selling the 1200 shares of Wal Mart:

1200 shares x $58.75 per share = $70,500

The total cost of the stock transaction is:

$42,600 + $12.99 = $42,612.99

The total revenue from the stock transaction is:

$70,500 - $12.99 = $70,487.01

Therefore, the net profit from each stock transaction is:

$70,487.01 - $42,612.99 = $27,874.02

Step-by-step explanation: