Missy bought 300 shares of GAM Corp. for 14 1/2 per share. What was the
total purchase price of the stock if she had to pay a 1% commission to
her stockbroker?
a. $4,350
b. $4,393.50
c. $4,306.50
d. $4,394
First, we need to find the total cost of the 300 shares before commission.
300 x 14 1/2 = $4,350
Now we need to add the commission, which is 1% of the total cost.
1% of $4,350 = $43.50
Therefore, the total purchase price of the stock including commission is:
$4,350 + $43.50 = $4,393.50
The answer is b. $4,393.50.