Jo Bower owns 150 shares of Data General stock. She purchased the stock for $24 a share. She sold her stock for $30 a share. The commissions required to buy and sell her stock totaled $120. Assuming that she received no dividends during the time she owned the stock, what is her total return for this transaction? A. $600B. $780 C. $900D. $2,400
Answer is c $900
No. You forgot to take the commission from her $900 profit.
150x6=900-120=780
To calculate Jo Bower's total return for this transaction, we need to consider the initial investment, the final sale amount, and any commissions paid.
1. Calculate the initial investment:
Jo purchased 150 shares of Data General stock for $24 a share. Therefore, the initial investment would be: 150 shares x $24/share = $3,600.
2. Calculate the final sale amount:
Jo sold her 150 shares of stock for $30 a share. Therefore, the final sale amount would be: 150 shares x $30/share = $4,500.
3. Calculate the total commission:
The commissions required to buy and sell Jo's stock totaled $120.
4. Calculate the net profit:
Net profit = Final sale amount - Initial investment - Commission
Net profit = $4,500 - $3,600 - $120 = $780.
Therefore, the total return for this transaction is $780.