Maureen bought 200 shares of BETA Corp. for 12 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. $2,500
b. $2,475
c. $25
d. $2,525
To find the total purchase price of the stock, we need to first find the cost of the shares themselves, and then add on the commission.
The cost of the shares is found by multiplying the number of shares (200) by the price per share (12 1/2):
200 x 12 1/2 = 2500
So the shares themselves cost $2,500.
To find the commission, we multiply the cost of the shares by the commission rate (1% or 0.01):
2500 x 0.01 = 25
So the commission is $25.
Finally, to find the total purchase price, we add the cost of the shares to the commission:
2500 + 25 = 2525
Therefore, the answer is (d) $2,525.