How do calculate the percentage return on investment

Assignment Help Financial Accounting
Reference no: EM132949750

Problem 1: You purchase 160 shares for $70 a share ($11,200), and after a year the price rises to $80. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):

a. 15 percent. Round your answer to one decimal place.

b. 35 percent. Round your answer to one decimal place.

c. 75 percent. Round your answer to one decimal place.

Reference no: EM132949750

Questions Cloud

Compute the bond yield to maturity : The market price of bonds is $1,140 and the market's required yield to maturity on a comparable-risk bond is 10 percent. Compute the bond yield to maturity
What could they find out by researching their market : Explain why you think Babu and Hari should conduct market research before starting their business. What could they find out by researching their Market
Advice the directors of access business enterprise limited : Advice the Directors of Access Business Enterprise Limited how the capital market can help the firm raised the $500m in new financing?
How much is the gain or loss on settlement : ValixAta Company reported the following information on its pension liability as of January 1, 2020: How much is the gain or loss on settlement
How do calculate the percentage return on investment : Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was 15 percent.
How much he will have after eight years : If he withdraws $5,000 in three years and $15,000 in seven years, assuming no withdrawal penalties, compute how much he will have after eight years
How it can be used as a competitive tool : Competitive advantage is often short-lived. In time, competitors imitate the leader, and the advantage diminishes. So, the quest for innovative strategies must
What is the annualized return on investment : What is the annualized return on your investment? You buy a mutual fund for $1,000. It annually distributes $60 for eight years, after which you sell the shares
Why sales of nestle is decreases : Why Sales of Nestle is decreases during the last three years? Explain with the references and briefly

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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