Question

Phil bought 700 shares of a company's stock for $9.29/share. He pays a broker a commission of $18 to buy and sell stock. After one year, he sold all his shares, which were worth $9.90/share at that time.

a) 6.0%
b) 6.2%
c) 6.5%
d) 6.8%

Answer 1

A 6.0%

Explanation:

Multiply the initial cost per share by the number of shares. Multiply the value of the shares when sold by the number of shares. Subtract the initial cost from the selling value. Subtract the two commissions from the increase in value. Divide the net increase in value by the original cost of the shares, and convert to a percent.

Answer 2

It seems that you are looking for the yield of the shares of stocks after they were sold.
To solve,
yield =( current total amount- previous total amount) / previous amountwherecurrent amount = $9.9/share*700share+ $18previous=$9.29/share*700 share
yield=[ (9.9*700)+18] -(9.29*700)/(9.29*700) x 100
yield= 6.8%
Shares of stocks yield = 6.8%