Question

Tim Jones needs help in making an investment decision. He has created the following table.
Purchase Price
100 shares
Commission
Total Cost
Sales Price
Commission
Cash to Tim =
Sales Price - Commission
Cash to Tim ÷ Total Cost (nearest tenth)
ABC = $525
0
$525
$787
0
$787
150%
DEF = $600
$275
$875
$900
$100
$800
%
1. If Tim does not buy DEF, how much can he spend on ABC?
2. How many shares of ABC can he buy if he does not buy DEF?
3. If the selling price is $1,750, how much will Tim have earned by investing?
4. What is the total return divided by the total cost in this example?