This workout helps us look at the impact of costs and fees on the buying and selling of shares. So the question says, you are a financial advisor who's advising on the impact of trading costs on a client's trade. The client has bought 2000 shares in a company at $30 per share and pays a flat brokerage fee of $10 per trade. And we can assume that that applies to both sales and purchases of shares. After a few days, the price of the stock has written to risen to $35. Good news. That's potentially a profit and the client has decided to sell. However, due to market volatility, the sale is executed at an average price of $34.50. Calculate the net profit after tax, assuming a capital gain tax rate of 15%. So we can work our way down the components of the transaction. So the initial purchase is quite straightforward. It's simply equal to the 2000 shares that they bought, multiplied by the price per share of 30, and that's $60,000. There's then the flat purchase fee to the brokerage of $10. A few days later, they sell the shares and we need to be careful here. It's not the $35 that they anticipated, it's actually the price that they achieved in the market. It's the 34.5. So to calculate the proceeds, we take 2000 shares and we multiply by $34.50. And that gives us an income of $69,000. So it does look like we're making a a healthy profit. We still have the fee on sale of $10, And then we can work out our net profit before any tax charge. And that's simply equal to the proceeds on selling the shares, basically less all of the costs. So the cost of buying the shares in the first place and the cost of two lots of fees, and that gives us 8,980.

Our tax rate it tells us is 15%. So we can calculate our tax, which is equal to the profit, multiplied by the 15%, and we can work out a final profit after tax, which is equal to the profit before tax, less the tax charge. And that gives us a net profit of $7,633.