BU111 Spring 2012 - Supplementary Questions

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Unformatted text preview: tudentsOfferingSupport www.youtube.com/user/StudsOfferingSupport Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com Students Offering Support: Wilfrid Laurier University The Straight Market Order Steps to Success: 1. Calculate the purchase price = #shares x (market price per share at the time of purchase) 2. Calculate the purchase commission = 2% of the purchase price 3. Calculate the total cost = purchase price + purchase commission 4. Calculate the sale price = #shares x (market price per share at the time of sale) 5. Calculate the sale commission = you 2% of the return on the sale 6. Calculate the total return = sale price – sale commission 7. Calculate the capital gain (if this # is negative it is a capital loss) = total return – total cost 8. Calculate the yield = capital gain ÷ purchase price Problem 1 As a self-proclaimed Facebook junkie, you decide to purchase 1,000 shares of the company during its Initial Public Offering (IPO). Shares are offered at a price of $38 each. H...
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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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