Made fantastic investment

Assignment Help Financial Management
Reference no: EM131014231

Arianna just made a fantastic investment: She purchased 400 shares in Great Gains Corporation for $21.50 per share. Yesterday the stock closed at $56.50 per share. In order to lock in her gains, she has decided to employ a stop-loss order Assuming she sets the order at $56, what is likely to happen? Why might this not be a wise decision? At what price would you recommend setting the stop-loss Why?

Reference no: EM131014231

Questions Cloud

What proportion of adults said that clothing was ?rst choice : What proportion of adults said that clothing was their ?rst choice? What are the odds that an adult will say that clothing is his or her ?rst choice?
What you see as irigaray apparent intentions : Include a brief discussion of what you see as Irigaray's apparent intentions with that passage. What clarity (or complexity) does this passage bring to the text
Calculate earnings per share and dividend yield : The Haley Corporation has just announced year-end results as follows: Value of company assets $12,500,000. Calculate the book value per share. Calculate earnings per share. Calculate Haley Corporation's dividend yield.
Most appropriate for an aggressive investor : An investor is considering purchasing one of the following three stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividend with little increase in earnings, and has a P/E ratio of 11. Which of the three would you clas..
Made fantastic investment : Arianna just made a fantastic investment: She purchased 400 shares in Great Gains Corporation for $21.50 per share. Yesterday the stock closed at $56.50 per share. In order to lock in her gains, she has decided to employ a stop-loss order Assuming sh..
Interpret the results in terms of the odds ratios : Explain the relationship between the con?dence intervals reported here and the results of the Wald z signi?cance tests that you found in the previous exercise. Interpret the results in terms of the odds ratios.
How is your realized after-tax return different : After reading this chapter, it isn't surprising that you're becoming an invest- ment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $37 per share.  What would be your total return on your KSU Corporation investme..
Give a very brief abstract of film : give a very brief abstract of film (no more than 1 paragraph), that also identifies the particular pastoral care theme being focused on for the assignment and how the theme is conveyed in the film
Discuss benefits of marketing with social networks : ECOM-322 - Social Media Marketing - Define social networking. Also discuss benefits of marketing with social networks and What do you mean by microblogging and discuss how microblogging can help businesses to achieve marketing objectives.

Reviews

Write a Review

Financial Management Questions & Answers

  Decreasing the portfolio volatility

Start with asset A which has an expected return of 10% and a volatility of 30%. Suppose that we introduce asset B with an expected return of 10% and a volatility of 30%. The correlation between the two asset returns is 0.9. What is the optimal combin..

  Estimate of the firms cost of equity from retained earnings

A. Butcher Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 10.50%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 4.85% over a f..

  What tax rate would investors indifferent between two bonds

A corporate bond currently yields 8.7%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At what tax rate would investors be indifferent between the two bonds?

  What is the terminal or horizon-value of operation

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100.000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of c..

  Which furnace should si choose-annual maintenance costs

Springfield Ironworks (SI) recently had their furnace break down and they need to quickly purchase a new one to minimize the disruption in their production. They can either choose a high quality furnace (H) that costs $130,000 with $4,000 of annual m..

  Draw expiry payoff diagram for the trader total portfolio

Draw the expiry payoff diagram for the trader total portfolio. Make sure you annotate the diagram fully and what are the no-arbitrage lower and no-arbitrage upper boundaries for the value of the trader's total portfolio?

  Considering a new three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.43 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Projected sales for the first six months

LPD Logistics, Inc.'s projected sales for the first six months of 2010 are given below.  20% of sales are collected in the month of the sale, 75% are collected in the month following the sale, and 5% are written off as uncollectible. Cost of goods so..

  Principal are loyalty-obedience-performance

The duties of an agent to her principal are loyalty, obedience, performance and which of the following: Administrative law agencies usually have three types of authority.

  Upfront total after-tax cash cost for this proposed project

Reality Automotive Corp. (“RAC”) manufactures after-market parts for automobiles and trucks (seat belts, windshield wiper blades, floor mats, and truckbed mats). The company is evaluating the expansion of its manufacturing plant to enable it to take ..

  Compute the price of the stock

Maxwell Communications paid a dividend of $1.20 last year. Over the next 12 months, the dividend is expected to grow at 15 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required r..

  Find the monthly house payment necessary to amortize

Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $267,000 at 10.8% for 15 years. What is their monthly payment? Round to the nearest cent.

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