User Account

All Pages

An investor purchases 500 shares of abc stock on margin at

Assignment Help Finance Basics
Reference no: EM13483555

An investor purchases 500 shares of ABC stock on margin at a price of $35 per share. Assume an initial margin requirement of 45% and annual interest on margin loans of 12%. Over the next year ABC stock rises to $40. What is the return on the investment?

Reference no: EM13483555

Questions Cloud

Evaluate minshengs global expansion strategy how should : question 1 how does government regulation affect a banks expansion in the global market? what are the possible
Lauer company reported net income of 66800 on sales of : lauer company reported net income of 66800 on sales of 300000. the company has total assets of 500000 and total
Home decorating pavilion received a bank statement : 1. crystal products allows customers to use bank credit cards to charge purchases. the bank used by crystal products
Arrow industries employs a standard cost system in which : arrow industries employs a standard cost system in which direct materials inventory is carried at standard cost. arrow
An investor purchases 500 shares of abc stock on margin at : an investor purchases 500 shares of abc stock on margin at a price of 35 per share. assume an initial margin
The melville company produces a single product called a : use the data for questions 7 to 9. direct materials- 15 direct labor- 12 variable manufacturing overhead- 8 fixed
Conch republic electronics is a midsized electronics : include a brief summary of the case background description of this case study given below and the answer to each
Management estimates that 5 of credit sales are not : 1.katie enterprises reports the year-end information from 20x8 as follows sales 70000 units 560000 cost of goods sold
Satellite products inc owns two subsidiaries saturn systems : satellite products inc. owns two subsidiaries saturn systems and neptune audio. saturn supplies printed circuit boards

Reviews

Write a Review

Finance Basics Questions & Answers

  The market''s estimate of the company''s growth ratete

Suppose your own 10% estimate of the stock's required rate of return is shared by the rest of the market. What does the market price of $50.00 per share imply about the market's estimate of the company's growth rate?

  Entry for acquisition of property

Valdilla's Music Store acquired Land and old buildling in exchange for 50,000 shares of its common stock, par $0.50 and cash of $80,000.

  What is the cross-rate in terms of yen per pound

Assume that U.S. six-month Treasury bills have an annualized rate of 6.2% while default-free Japanese bonds that mature in six months have an annualized rate of 5.0% and that interest rate parity holds.

  What is the internal growth rate

What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16). )

  Computation of break even points

Computation of break even points - What would the breakeven volume be at this new selling price?

  Does the project annual worth indicate

At a corporate MARR of 10% per year, does the project Annual Worth indicate it will make at least the MARR?

  What is their yield to call

Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?

  Your analysis of two companies reveals identical levels of

your analysis of two companies reveals identical levels of working capital. are you confident in concluding their

  Should the firm purchase the new stock

Should the firm purchase the new stock? At what expected rate of return should McAlhany be indifferent to purchasing the stock?

  How many of the old shares must be given up

How many of the old shares must be given up for one new share to achieve the $25 price, assuming this transaction has no effect on total market value?

  What is the exercise value of the option

A 6-month put option on Makler Corp.'s stock has a strike price of $47.50 and sells in the market for $8.90. Makler's current stock price is $41.00. What is the exercise value of the option?

  Advantages and disadvantages of buying existing business

Examine the advantages and disadvantages of buying an existing business.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd