Question

Lakeesha bought 300 shares of stock at $48.25 per share. Her broker charges 3% commission for round lots and 4% for odd lots. Calculate the total cost of the stock purchase.

Answer 1

$14909.25

Step-by-step explanation:

Given :

Recall : A round lot is any number of shares that can be evenly divided by 100 while an odd lot is any number of shares between 1 and 100.

Therefore, 300 shares will be classified as a round lot.

Commission paid on round lot = 3%

Price per share = $48.25

Share price for 300 : ($48.25 * 300) = $14,475

Commission fee = 3% * 14475 = $434.25

Total cost of stock purchase :

$(14475 + 434.25)

= $14909.25