A share of stock in the Bree Medical Supply Company is quoted at 35 ¼. Suppose you hold 20 shares of that stock, which bought at 3 ½ . If you sold your stock at 35 ¼ which of the following would be true?
A. You made a profit of $75.00.
B. You suffered a loss of $75.00.
C. You made a profit of $705.00.
D. You suffered a loss of $630.00.
2007-01-28 10:38:57 · 3 answers · asked by Lynn D 1 in Science & Mathematics ➔ Mathematics
Purchase price = 3 ½
Sale price= 35 ¼
Holding = 20 shares
Total purchase amount = Holding * Purchase price
Total sale amount = Holding * Sale price
Profit(/Loss) = Holding * (Sale price - Purchase price)
= 20 * (35 ¼ - 3 ½ )
= 20 * (31 3/4)
= + $635 (profit)
close to C. (check?)
2007-01-28 10:41:51 · answer #1 · answered by smci 7 · 0⤊ 0⤋
Technically none of the above: Selling the stock for $35.25 would get you $705 for the 20 shares, but you had to pay $70 to buy them in the first place, so your ACTUAL profit is $635...
2007-01-28 18:57:12 · answer #2 · answered by ithinkiknow 1 · 0⤊ 0⤋
Sell price - buy price = profit/share
35.25-3.5 = 31.75 profit/share
20*31.75=$635.00 profit.
Since this is not one of the answers, so something is wrong with the question.
2007-01-28 18:48:58 · answer #3 · answered by ironduke8159 7 · 0⤊ 0⤋