Transaction costs You would like to purchase one Class A share of Berkshire Hathaway through your Scottrade brokerage account. Scottrade charges a $7 commission for online trades. You log into your account, check the real-time quotes for Berkshire Hathaway (you see a bid price of $262 comma 850 and an ask price of $263 comma 770) and submit your order.
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The buying and selling commission schedule shown in the table is from an online discount brokerage firm. Taking into consideration the buying and selling commissions in this schedule, find the annual compound rate of interest earned on the investment: Transaction Size Commission Rate $0 - $1,500 $29 + 2.5% of principal $1,501 - $6,000 $57 + 0.6% of principal $6,001 - $22,000 $75 + 0.30% of principal $22,001 - $50,000 $97 + 0.20% of principal $50,001 - $500,000 $147 + 0.10% of principal $500,001 + $247 + 0.08% of principal An investor purchases 85 shares of stock at $50 per share, holds the stock for 5 years, and then sells the stock for $130 a share.
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The ticker shows trades of stock in Hewlett-Packard (HPQ), ExxonMobil $(\mathrm{XOM})$ , and Chevron $(\mathrm{CVX})$ . (Table Cant Copy) a. How many shares of Hewlett-Packard were sold? b. What was the total value of all the HPQ shares sold? c. Joan bought the shares at this price, and her broker charged her 1% commission. What was the total cost of her investment? d. Reggie sold the shares of Exxon-Mobil shown in the above trade, and his broker charged him 1.5% commission. How much money did the broker receive? Round to the nearest cent. e. Lisa sold the shares of Chevron indicated above through her discount broker, who charges $\$ 28$ per transaction. How much money did Lisa receive from the above sale after the broker took his fee?
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Select the correct answer from each drop-down menu: Fee Schedule | Fee per Trade | Commission portfolio less than $100,000 | $10 | 1% commission plus fees per trade portfolio equal to or greater than $100,000 | $8 | 0.75% commission plus fees per trade Joe's broker's fee schedule is given in the table. Joe's current portfolio is worth $50,000. He wants to purchase 50 shares of a company's stock for a purchase price of $15 per share. Joe will need to pay a commission of . The total amount charged by the broker will be .
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