Question

Your discount brokerage firm charges $8.35 per stock trade. How much money do you need to...

Your discount brokerage firm charges $8.35 per stock trade.

How much money do you need to buy 250 shares of Pfizer, Inc. (PFE), which trades at $32.72? (Round your answer to 2 decimal places.)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Solution:
Money needed to buy 250 shares of Pfizer, Inc. = $8,188.35
Working Notes:
Money needed to buy 250 shares of Pfizer, Inc. = Market price of 250 shares of Pfizer + Brokerage
=250 shares x $32.72 per share    + $8.35
=$8,180 + $8.35
=$8,188.35
Notes: Brokerage is per stock trade , not per shares , only brokerage needed for the purchase is $8.35 , as we do only one trade for the purchase
Please feel free to ask if anything about above solution in comment section of the question.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You’ve just opened a margin account with $20,160 at your local brokerage firm. You instruct your...
You’ve just opened a margin account with $20,160 at your local brokerage firm. You instruct your broker to purchase 1,200 shares of Landon Golf stock, which currently sells for $28 per share. Suppose the call money rate is 7 percent and your broker charges you a spread of 1 percent over this rate. You hold the stock for five months and sell at a price of $35 per share. The company paid a dividend of $0.47 per share the day...
You’ve just opened a margin account with $25,740 at your local brokerage firm. You instruct your...
You’ve just opened a margin account with $25,740 at your local brokerage firm. You instruct your broker to purchase 450 shares of Landon Golf stock, which currently sells for $88 per share. Suppose the call money rate is 5.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for four months and sell at a price of $95 per share. The company paid a dividend of $0.55 per share the day...
You find the following order book on a particular stock. The last trade on the stock...
You find the following order book on a particular stock. The last trade on the stock was at $66.76. Buy Orders Sell Orders Shares Price Shares Price 250 $66.75 250 $66.78 500 66.74 650 66.79 900 66.73 1,000 66.81 275 66.71 300 66.82 100 66.83 a. If you place a market buy order for 200 shares, at what price will it be filled? (Round your answer to 2 decimal places.) Share price b. If you place a market sell order...
Part A: You find the following order book on a particular stock. The last trade on...
Part A: You find the following order book on a particular stock. The last trade on the stock was at $42.34. Buy Orders Sell Orders Shares Price Shares Price 250 $42.33 100 $42.36 400 42.32 350 42.37 900 42.31 1,000 42.39 225 42.29 200 42.40 300 42.41 a. If you place a market buy order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places.) SHARE PRICE: b. If you place a market...
You’ve just opened a margin account with $20,000 at your local brokerage firm. You instruct your...
You’ve just opened a margin account with $20,000 at your local brokerage firm. You instruct your broker to purchase 500 shares of Landon Golf stock, which currently sells for $60 per share. Suppose the call money rate is 5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for six months and sell at a price of $65 per share. The company paid a dividend of $.25 per share the day...
How much money would you have to deposit today in order to have $5,000 in four...
How much money would you have to deposit today in order to have $5,000 in four years if the discount rate is 7 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Amount of deposit
Suppose you own 30,000 shares of common stock in a firm with 1.5 million total shares...
Suppose you own 30,000 shares of common stock in a firm with 1.5 million total shares outstanding. The firm announces a plan to sell an additional 0.6 million shares through a rights offering. The market value of the stock is $45 before the rights offering and the new shares are being offered to existing shareholders at a $5 discount. a. If you exercise your preemptive rights, how many of the new shares can you purchase? b. What is the market...
Suppose you own 88,000 shares of common stock in a firm with 4.4 million total shares...
Suppose you own 88,000 shares of common stock in a firm with 4.4 million total shares outstanding. The firm announces a plan to sell an additional 2.2 million shares through a rights offering. The market value of the stock is $40 before the rights offering and the new shares are being offered to existing shareholders at a $5 discount. a. If you exercise your preemptive rights, how many of the new shares can you purchase?      New shares b. What...
Cheap Money Bank offers your firm a discount interest loan at 5 percent for up to...
Cheap Money Bank offers your firm a discount interest loan at 5 percent for up to $18 million and, in addition, requires you to maintain a 2 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
You are saving for a down payment on a car. How much money do you need...
You are saving for a down payment on a car. How much money do you need to deposit into a savings account per month to have $8,000 in your account in two years? The interest rate on your account is 6%/year.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT