Question

# Bill Campbell invested \$4,000 and borrowed \$4,000 to purchase shares in Walmart. At the time of...

Bill Campbell invested \$4,000 and borrowed \$4,000 to purchase shares in Walmart. At the time of investment, Walmart stock was selling for \$62 a share.

(a) If Bill paid a \$30 commission, how many shares could he buy if he used only his own money and did not use margin? (Round your answer to 2 decimal places.)

(b) If Bill paid a \$50 commission, how many shares could he buy if he used his \$4,000 and borrowed \$4,000 on margin to buy Walmart stock? (Round your answer to 2 decimal places.)

(c) Assuming Bill did use margin, paid a \$90 total commission to sell his Walmart stock, and sold his stock for \$75 a share, how much profit did he make on his Walmart investment? (Use the number of shares computed in part (b) rounded to 2 decimal places. Round your final answer to 2 decimal places.)

Total Profit after commission:

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