Examples of Selling & Buying Shares with Discount
BUYING SHARES If you buy 100 shares at Rs. 62.50 per share with a 2% commission, calculate your total cost. Calculation 100 * Rs. 62.50 = Rs. 6,250 0.02 * Rs. 6,250 = 125 Total = Rs. 6,375 RETURN ON INVESTMENT Suppose you bought 100 shares at Rs. 52.25 and sold them after 1 year at Rs. 68. With a 1% commission rate of buying and selling the stock and 10 % dividend per share is due on these shares. Face value of each share is 10Rs. What is your return on investment? Bought 100 shares at Rs. 52.25 = 5,225.00 Commission at 1% = 52.25 Total Costs =5,225 + 52.25 = 5,277.25 Sold 100 shares at Rs. 68 = 6,800.00 Commission at 1% = - 68.00 Total Sale = 6,800 – 68 = 6,732.00 Gain Net receipts = 6,732.00 Total cost = - 5,277.25 Net Gain = 6,732 – 5,277.25 =1,454.75 Dividends (10010/10) = 100.00 Total Gain = 1,454.75 + 100 = 1,554.75 Return on investment = 1,554.75/5,277.25100 = 29.46 % The calculations using Excel were made as follows: BOUGHT Data entry Cell B21: 100 Cell B22: 52.25
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