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20 December, 01:43

Kim placed an order with her broker for 800 shares of each of three IPOs being offered this week. Each of the IPOs has an offer price of $30. The number of shares allocated to Kim along with the closing prices on the first trading day are:Stock Shares Allocated Price A 700 $ 29.15 B 430 33.86 C 340 36.43 What is Kim's total profit on these three stocks at the end of the first day of trading? Multiple Choice a. $4,929.50 b. $3,251.00 c. $3,715.40 d. $1,591.20 e. $6,608.00

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  1. 20 December, 02:10
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    B. $3,251

    Explanation:

    Stock shares * Allocated price = Shares closing price

    A 700 * $ 29.15 = $20,405

    B 430 * 33.86=$14,560

    C 340 * 36.43 = $12,386

    Total $47,351

    Stock shares * IPO price = Shares IPO price

    A 700 * $30=$21,000

    B 430*$30 = $12,900

    C 340*$30=$10,200

    Total $44,100

    Total Profits $47,351-$44,100

    =$3,251

    Therefore Kim's total profit on these three stocks at the end of the first day of trading will be $3,251
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