Bob Orleans invested $3,000 and borrowed $3,000 to purchaseshares in Verizon Communications. At the time of his investment,Verizon was selling for $16 a share.
a. If Bob paid a commission of $40, how manyshares could he buy if he used only his own money and didnot use margin?
b.  If Bob paid a commission of $80,how many shares could he buy if he used his $3,000 and borrowed$3,000 on margin to buy Verizon stock?
c. Assume Bob did use margin and paid acommission of $80 to buy his Verizon stock. Also, assume he paidanother $80 to sell his stock and sold the stock for $22 a share.How much profit did he make on his Verizon stock investment?(Use the rounded number of shares computed in part b. Roundyour answer to 2 decimal places.)
