Three years ago, you purchased 220 shares of IBM stock for $92 a share. Today, you sold
Question:
Three years ago, you purchased 220 shares of IBM stock for $92 a share. Today, you sold your IBM stock for $140 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares and dividends you might have received as a shareholder.
a. What is the amount of profit you earned on each share of IBM stock?
b. What is the total amount of profit for your IBM investment?
Step by Step Answer:
a The profit for each share of IBM stock was 48 as i...View the full answer
Personal Finance
ISBN: 978-1259720680
12th edition
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Business questions
-
Three years ago you purchased a 10% coupon bond that pays semiannual coupon payments for $975. What would be your bond equivalent yield if you sold the bond for current market price of $1,050?
-
Three years ago, you purchased 150 shares of IBM stock for $92 a share. Today, you sold your IBM stock for $183 a share. For this problem, ignore commissions that would be charged to buy and sell...
-
Three years ago you purchased a Heinz corporate bond that pays 3.125 percent annual interest. The face value of the bond is $1,000. What is the total dollar amount of interest that you received from...
-
A parallel-plate capacitor with circular plates of radius 0.10 m is being discharged. A circular loop of radius 0.20 m is concentric with the capacitor and halfway between the plates. The...
-
The profit from the production and sale of a product is P(x) = 47x - 0.01x2 - 8000, where x represents the number of units produced and sold. Give (a) The profit from the production and sale of 2000...
-
Imagine a container placed in a tub of water, as depicted in the accompanying diagram. (a) If the contents of the container are the system and heat is able to flow through the container walls, what...
-
An irreversible machine is also called self-locking machine. True or False
-
On January 31, 2016, the general ledger of Meeks Company showed the following account balances. Prepare the worksheet through the Adjusted Trial Balance section. Assume that every account has the...
-
Respond in a summative manner to the 2 separate posts. Post 1 In your reading it sets forth the pronouncement that the Constitution is the supreme law of the land. How does Planned Parenthood of S.E....
-
Design and implement an application that reads a sentence from the user and prints the sentence with the characters of each word backward. Use a stack to reverse the characters of each word.
-
Beth and Bob Mart in have a total take-home pay of $4,200 a month. Their monthly expenses total $3,100. Calculate the minimum amount this couple needs to establish an emergency fund. How did you...
-
Assume that you purchased a corporate bond with a face value of $1,000.The interest rate is 3.60 percent. What is the dollar amount of annual interest you will receive each year?
-
A composite one-dimensional plane wall is of overall thickness \(2 L\). Material A spans the domain \(-L \leq x <0\) and experiences an exothermic chemical reaction leading to a uniform volumetric...
-
Let u= (1,0,0) and v = (x,1,1). a. Find the value of x such that the angle between u and v is 30. b. Find the value of x such that the angle between u and v is 60. c. Find the value of x such that...
-
Explain the relationship depicted by the Phillips Curve. How do policymakers use it to guide economic decisions?
-
What is the fundament difference between growing a unicorn versus a camel? What are the financial recommendations for start-ups and the reasons given for those choices? Do you agree with these...
-
1. Currently, Jim Morris makes $100,000. Next year his income will be $120,000. Jim is a big spender and he wants to consume $150,000 this year. The equilibrium interest rate is 10 percent. What will...
-
Discuss the following questions as if you were planning to marry. What is the value of having such a discussion with a future spouse? Do you expect to share equally in financial decisions? If not,...
-
Use the evenodd properties to find the exact value of each expression. Do not use a calculator. cos(-270)
-
Saccharin is an artificial sweetener that is used in diet beverages. In order for it to be metabolized by the body, it must pass into cells. Below are shown the two forms of saccharin. Saccharin has...
-
(a) If Lola invests $3000 annually into two growth mutual funds, which two types would you recommend and why? (b) Alternatively, if Lola invests $3000 annually into two growth and income funds, which...
-
1. What are the two key questions to consider before investing in real estate? 2. Distinguish between the price-to-rent ratio and the rental yield as measures of current income.
-
1. Summarize how depreciation is used to reduce the income from a real estate investment. 2. Briefly explain how the interest paid on the mortgage of a real estate investment reduces one's income...
-
(3) Calculate m(R) (volume of R) Given: R is the region of the 3- dim space, defined by: 3 Upper border: Z = 92 (x, y) = 3x+5y3 Lower border: Z = 9, (x,y) = x+y xy projection: D= pr (R) = triangle...
-
Explain what is Model, Strategy, Algorithm in math teaching? How is it similar/compare to 'algorithm' language of borrow or carry over in subtraction
-
Directions and Info for Building 1. Use a program where you can draw and type, like pages, or you can draw this out on a piece of paper and take a picture to submit. 2. You will begin with the...
Study smarter with the SolutionInn App