User Account

All Pages

Calculate investor profit or loss

Assignment Help Financial Accounting
Reference no: EM132804324

Question - Buy 100 shares at $60 per share, Margin requirement 50%, Maintenance margin 25%, Interest on loan 10% p.a. Assume no transaction costs.

Calculate investor's profit/loss in $ AND investor's rate of return in %

i) if price increases by 25% from $60 to $75

ii) if price decreases by 25% from $60 to $45

iii) What conclusion can you make based on the above answers?

What are the advantages of Margin trading?

Reference no: EM132804324

Questions Cloud

What is the stock current rate of return : A firm's stock is currently selling for $37 and just recently paid a dividend of $4 a share. It is expected to grow at a constant rate of 5.5%.
Reflect on what new information you have learned : Go to the Kean University website and explore the following sections by searching for each in the search bar: Academic Integrity Policy.
Which statements indicates a qualified opinion : If the auditor believes that required disclosures are omitted from the financial statements, the auditor should decide between issuing
What business practices appear to be different : Differing business practices among cultures: What business practices appear to be different among the cultures/organizations in the case study?
Calculate investor profit or loss : Margin requirement 50%, Maintenance margin 25%, Interest on loan 10% p.a. Assume no transaction costs. Calculate investor profit or loss
Will there be an impact on your personal economic situation : Will there be an impact on your personal economic situation, if so, what will happen - World debt has never been higher
What dividend is expected during the next year : A firm recently paid a dividend of $2 and expects a constant future growth rate of 7%. What dividend is expected during the next year?
Which sets of circumstances might an auditor disclaim : If the auditor believes there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial statements, the auditor would
Briefly explain the purpose of the study : In the Weekly Introduction, there is a quote by Isaac Newton, "If I have seen further, it is by standing on the shoulders of giants." This quote expresses how.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Identify and analyze the adjustment

For each of the preceding situations, identify and analyze the adjustment to be recorded on December 31, 2014.

  Miscellaneous itemized deduction

Which of the following items is not a miscellaneous itemized deduction?

  Explain what is the accounts receivable

Sales are 80% credit, of which 40% is collected in the month of sale and 60% is collected in the following month. What is the accounts receivable balance on July 31?

  Calculate depreciation expense for the final year of service

Aaron Company purchased equipment at cost of $140,000. Using straight-line depreciation, calculate depreciation expense for the final (partial) year of service.

  Purchase of inventory with cash affect the ratio

Assuming a current ratio of 1.0, how will the purchase of inventory with cash affect the ratio? A. increase the current ratio B. no change to the current ratio C. decrease the current ratio D. could either increase or decrease the current ratio

  What is the value of the holding in minimoon

What is the value of the holding in MiniMoon? TeleNovela Inc. currently has a net income of 1700 million Colombian Pesos (COP).

  How are they recorded in last year accounts

Johnis a company director withundrawn wages-director feesfrom last year $108K and how are they recorded in last year accounts?

  What is the total amount of contributed capital at December

Less: Treasury stock (3,000 common shares at cost) 61,500 and Retained earnings 70,000. What is the total amount of contributed capital at December

  Give overview of the company product manufactured

Give overview of the company's, product/services manufactured or provided, number of employees both locally, nationally and internationally.

  Resident of texas

Marcus, a resident of Texas, has found the ideal gift for his wife in celebration of their upcoming wedding anniversary, which is a $22,000 diamond tennis bracelet. However, Marcus is appalled at the prospect of paying the state and local sales tax o..

  Compute how much money will have in account after one year

Compute How much money will you have in the account after 1 year? CD offering 5% APR with semi-annual compounding (i.e., two times per year).

  Determine the trading directions

Determine the trading directions. Suppose the manager of Profitability Fund would like to know some information about the high-frequency

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