Ralph Warren purchased 27 shares of stock at 16 3/8 per share. He paid a $27.50 brokerage fee. He later sold all 27 shares at 17 5/8 and paid a $28.75 brokerage fee. (36) What was his total cost for the stock including his brokerage fee? (37) What did he receive from the sale of the stock after he paid the brokerage fee? (38) Did he have a capital gain or loss? (39) How much was the gain or loss? (40) What was the net change from 16 3/8 to 17 5/8?

Respuesta :

Based on the number of shares that Ralph Warren purchased, the total cost of the stock was $469.63. The amount he received from sales was $447.13. The capital loss was $22.50.

What was the gain on the sale of the shares?

The cost of the stock was:

= (27 x 16³/₈) + 27.50

= $469.63

The amount received from sales:

= (27 x 17⁵/₈) - 28.75

= $447.13

This capital gain (loss):

= 447.13 - 469.63

= -$22.50

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