Answer :
No of shares he can buy is 248 if Bob Orleans invested $5,000 and borrowed $5,000 to purchase shares in Verizon Communications.
No of shares he can buy = (Own money - Comission) / Selling price = (5000 - 40) / 20 = 4960/20
No of shares he can buy=248
B)
No of shares he can buy with borrowed and own money= (Own money + Borrowed Money - Comission) / Selling price = (5000 + 5000- 80) / 20 = 9920/20
No of shares he can buy=496
C)
Profit = (Selling price - Purchase price ) * No of shares bought with borrowed and own money - ( Commission at purchase + Commission at sell)
=(26-20)
*496 - (80+80)
= 6*496 - 160
=2976 - 160
No of shares he can buy=2816
A buyer actually pays the selling price when purchasing a good or service. It is a price that is higher than the cost price and also includes a profit margin. Setting a selling price is a delicate topic because it heavily influences how many units of a product are sold.
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