Stock questions. please help 10pts best answer?

John Adams purchased 100 shares of XYZ Corporation for $25 a share and paid a commission of $125. The current price of the stock is $32 per share. Last year, John received dividends of $1 per share. Based on the information given, compute stock returns.

Sally Clark purchased 500 shares of ABC Corporation for $10 per share and paid a total commission of $200. The current price of the stock is $12 per share. Last year, Sally received dividends of $2 per share. Based on the information given, compute stock returns.

Alice Kruse purchased 1,000 shares of Kendall Corporation for $22.50 per share and paid a total commission of $575. The current price of the stock is $25 per share. Last year, Alice received divi­dends of $880. Based on the information given, compute stock returns.

Mike Welch purchased 5,000 shares of Grass Roots stock for $82 per share and paid a commission of 1 percent on the purchase price. The current value of the stock is $96 per share. Mike received no dividends last year. Based on the information given, compute stock returns.

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  • 7 years ago
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    1) 100 (32-25+1) - 125 = 625/2,500 = 25% or 625/2,625 = 23.8% if commission is counted as part of the cost of the initial investment.

    2) 500 (12-10+2) - 200 = 1,800/5,000 = 36% or 1,800/5,200 = 34.62% if commission is counted as part of the cost of the initial investment.

    3) 1,000 (25-22.50) - 575 + 880 = 2,805/22,500 = 12.47% or 2,805/23,075 = 12.16% if commission is counted as part of the cost of the initial investment.

    4) 5,000 (96-82) - (5,000*82*0.01) = 65,900/410,000 = 16.07% or 65,900/414,100 = 15.91% if commission is counted as part of the cost of the initial investment.

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