BU111 Spring 2012 - Supplementary Questions

Raising marks raising money raising roofs

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Unformatted text preview: Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com Students Offering Support: Wilfrid Laurier University Buying on Margin Steps to Success: 1. Calculate the Broker Loan = (investor’s money ÷ minimum margin requirement) - investor’s money 2. Calculate the # of shares that can be purchased = (investor’s money + broker loan) ÷ (market price per share at the time of purchase) 3. Calculate the purchase price = # shares x (market price per share at the time of purchase) = investor’s money investing + broker loan 4. Calculate the purchase commission = 2% of the purchase price 5. Calculate the sale price = #shares x (market price per share at the time of sale) 6. Calculate the sale commission = 2% of the return on the sale 7. Calculate the capital gain (if this # is negative it is a capital loss) = sale price – sale commission – purchase price – purchase commission Problem 5 After winning $10,000 playing Plinko on The Price is Right, you decide purchase common shares of Corus Entertainment on marg...
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This note was uploaded on 02/07/2014 for the course BU 111 taught by Professor Jessicastockie during the Fall '08 term at Wilfred Laurier University .

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