Question: Bob Orleans invested $5,000 and borrowed $5,000 to purchase shares in Verizon Communications. At the time of his investment, Verizon was selling for $15 a share.
a. If Bob paid a $20 commission, how many shares could he buy if he used only his own money and did not use margin? Number of shares
b. If Bob paid a $40 commission, how many shares could he buy if he used his $5,000 and borrowed $5,000 on margin to buy Verizon stock? Number of shares
c. Assuming Bob did use margin, paid a $40 total commission to buy his Verizon stock and another $40 to sell his stock, and sold the stock for $24 a share, how much profit did he make on his Verizon stock investment? Profit $