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A Full-Service Broker Charges a Commission Rate of 2

Question 157

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A full-service broker charges a commission rate of 2.2% of the total dollar value of a stock transaction. A discount broker charges a transaction fee of $25 plus an additional five cents per share. Suppose you purchase 800 shares of Talisman Energy at $21.75 per share. What percentage of the commission fee charged by the full-service broker would you save by using the discount broker?

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