Percentage increase in net worth of your brokerage account

Assignment Help Financial Econometrics
Reference no: EM131990475

Suppose that Xtel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to (a) $44; (b) $40; (c) $36? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) a. Percentage gain % b. Percentage gain % c. Percentage gain %.

Reference no: EM131990475

Questions Cloud

List the interest groups that are mentioned in the brief : Answer one of the following questions: List the interest groups that are mentioned in the brief and what their interest is in the piece.
Should the trump administration allow at and t to merge : Should the Trump Administration allow AT&T to merge with TimeWarner, and, if it does, how might the combination of the companies affect.
Explaining the different types of turnover : Identify and discuss the different types of turnover. Explain the impact each has on managing the workforce. What downsizing target methods do you feel.
What was new millenniums free cash flow last year : What was New Millenniums Free cash flow last year. What is the? company's P/E ratio based on last? year's earnings? (i.e., trailing? earnings)?
Percentage increase in net worth of your brokerage account : What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to
Create a job description for a retail sales associate : Create a job description for a retail sales associate, which includes the most significant components necessary to describe the job both internally.
What is the yield to maturity at current market price : Harrimon Industries bonds have 6 years left to maturity. What is the yield to maturity at a current market price of $839?
What are some appropriate questions to ask the patient : What are some appropriate questions to ask the patient? What are three differential diagnoses for the patient? What physical examination would you perform?
Discuss how a project managed with offshore resources : Discuss how a project managed with offshore resources can be different compared to all onsite resources? Give example of one of the PM disciplines to elaborate.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Find the weighted average cost of capital given the data

Company X is considering changing its capital structure in light of the tough business environment. Currently, Company X's total capital consists of: $950 million in debt

  Determine the no-arbitrage us price of adr

In the London market, EEC Inc.'s stock closed at £0.875 per share on Thursday, April 1, 2005. EEC trades in ADRs in the over-the-counter market in the United States.

  How do taxes affect the cost of capital

What is the cost of capital, what are WACC and MCC and how do taxes affect the cost of capital?

  Effect of contrys interest rate increases on the lm curve

Explain the effect of The country's central bank decreases the money supply and The country's interest rate increases on the LM curve?

  What amount of money sarah will have to invest today is

If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is. If Sarah earned an annual return of 17 percent, how soon could she then retire.

  Calculate the firms long term debt for the year

During the year, Belyk Paving Co. had sales of $2,385,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,440,000, $436,500, and $491,500, respectively.

  What will the monthly payment be of new sports car

You want to buy a new sports car from Muscle Motors for $86,000. The contract is in the form of a 72-month annuity due at a 7.65 percent APR. What will your monthly payment be

  List and explain the six properties of idea money

List and explain the six properties of idea money. List tools used by the Federal Reserve to expand and contract money supply and clearly explain how they work

  Calculate the current rates for maturity treasury securities

Suppose that the current one-year rate (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: 1R1=6%, E(2r1)=7%, E(3r1)=7.5%, E(4r1)=7.85%

  Determine possible investment potential between 2-companies

As the representative from your accounting firm or practice, you are in charge of stock market analysis that will be presented to clients as part of professional consultation process.

  What aspects of the imf''s mission is controversial and why

The International Monetary Fund (IMF) provides assistance to countries experiencing economic woes.

  Estimate Fama-French empirical asset pricing model

FIN5EME Assignment - Econometric Methods. Estimate Fama-French's three-factor empirical asset pricing model using the market excess return

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