An investor bought 15,000 Ordinary Shares (nominal value £4.50) at 480 pence each. She paid a broker's commission of 0.25% of the nominal value.
(a) Calculate the total cost of the shares including commission. Give your answer in pounds.
After 5 years, the shares are sold for 912 pence.
(b) Calculate the income from the sale, before commission.
For the sale, the investor pays a flat-rate broker's commission of £80. No dividend was paid for the first two years. For the next two years, the dividends declared were:
Year 3 Year 4
3p per share 6.5p per share
For the fifth year the dividend amounted to 2% of the nominal value of the shares.
(c) Calculate the total profit made by the investor, including purchase, sale, dividends and commissions.