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Re: ::: vuaskari.com ::: mth302 1Question solved



On Sat, Oct 29, 2011 at 12:50 PM, mc110402630 Haroon Hafeez <mc110402630@vu.edu.pk> wrote:
please send the solution to the other questions also

On Thu, Oct 27, 2011 at 12:38 PM, MUHAMMAD SARIM <sarim.sarwar@gmail.com> wrote:

Question No. 1:

 

A company bought  shares at Rs.  per share and sold them after  year at Rs. .  With a commission rate of buying and selling the stock. What is its return on investment?

 

 

Solution:

 

Bought

 

1000 shares at Rs. 56.27 = 56,270

Commission at 1.2% = 675.24

Total Costs = 56,270 + 675.24 = 56,945.24

 

Sold

 

1000 shares at Rs. 65.25 = 65,250

Commission at 1.2% = 783

Total Sale = 65,250 – 783 = 64,467

 

Gain

 

Net receipts = 64,467

Total cost = 56,270

Net Gain = 64,467 – 56,270 = 8,197

Dividends (1000*10/10) = 1,000

Total Gain = 8,197 + 1,000 = 9,197

Return on investment = 9,197 / 56,945.24 * 100

Return on investment = 16.15%

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