Rate of return on investment

Assignment Help Finance Basics
Reference no: EM131152777

You decide to sell short 100 shares of Charlote Horse FArms when it selling at its yearly high of P56.Your brokers tell you that your margin requirement is 45% and the commission on the purchased of P155. While you are the short the stock, Charlotte pays P2.50 per share dividend. AT the end of one year, you buy 100 shares of Charlotte at P45 to close out your position and charged a commission of P145 and 8% interest on the money borrowed. What is your rate of return on Investment?

Reference no: EM131152777

Questions Cloud

How would you communicate your selection : What do you hope to impact and/or influence with your selection: individual/organizational performance? How do internal and/or external cultural influences relate to your selection? How would you communicate your selection
Residents in an underserved central florida areas : We are investigating the purchase of a new mobile primary care van to use in screening residents in an underserved Central Florida areas. The van will last for 5 years and costs $68,000. We will pay for the acquisition and maintenance of the van p..
Analyze whether or not harley-davidson source of sustainable : Using all you have learned to date about Harley-Davidson, analyze whether or not Harley-Davidson has a source of sustainable competitive advantage. Defend your answer using examples from your readings, the annual report, and other sources.
Specializes in small business furniture and equipment : You are interviewing for a job with an online retail company that specializes in small business furniture and equipment. The job would require you to deal with the different vendors whose products are featured and sold through the online retail site...
Rate of return on investment : Charlotte pays P2.50 per share dividend. AT the end of one year, you buy 100 shares of Charlotte at P45 to close out your position and charged a commission of P145 and 8% interest on the money borrowed. What is your rate of return on Investment?
How influential is their input to the design project : In the facility design, who are the stakeholders and how influential is their input to the design project? Why do you think health care facility building is so expensive? What drives costs? Thinking about your own community and the major health care ..
What is target debt to asset ratio : What is target debt to asset ratio? And b) How many shares of RBJ stock must you sell to undo the leverage if you can loan out funds at 10% interest?
Find ways to enhance market power by pooling : Find economies of scope. Provide examples of specific actions Harley-Davidson's managers could take to reduce expenses or share activities through horizontal relationships across brands.
Indicate an adjusting entry : Find a line item listed on either the income statement or balance sheet that would indicate an adjusting entry and describe the entry. What do you think the effect would be on the company's financial statements if the adjustment was not made?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the average accounting return

The projected net income from the project is $1,200, $2,300, and $1,800 a year for the next 3 years, respectively. What is the average accounting return?

  A private energy trading company is considering the

a private energy trading company is considering the acquisition of a heavy crude container. this is to handle a variety

  Examine the marketing mix elements

The success of this product represents a success for marketing. In this discussion thread we will examine some of the reasons for its success.

  How much should be paid for mortgage instruments

The company just paid dividends of $1. This growth rate% is expected to continue. How much should be paid for Mortgage Instruments stocks just after this year's dividend of theappropriate required rate is 5%.

  Does it affect the closing entries and financial statements

What happens if an adjusting entry is not made? Does it affect the closing entries and financial statements? If so, how and what can be done to rectify this problem?

  Define the immediate effect on funds requirements

Supost a firm's makes the policy change listed below. If change means that external, nonspontaneous financial requirements (AFN) will increase indicate by a (+); indicate a decrease by a (-); and indicate no affect or an indeterminate effect by a ..

  Estimate today 1-year forward exchange rate

a. What do the financial markets suggest for inflation in Europe next year? b. Estimate today's 1-year forward exchange rate between the dollar and the euro?

  What coupon interest rate must the company set

Each warrant is expected to have a market value of $4.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par?

  Shareholders role in an organization

Determine what would be considered preferred stock vs. common stock? I do understand the idea of how an shareholders' role is played in an organization when considering preferred stock and common stock.

  Setting-up a devaluation store

An organization bought 3 years, lease on first April, 2008 for Rs. 50,000. It is chosen to accommodate the substitution of the lease toward the end of 3 years by setting-up a devaluation store.

  How much will your purchasing power increase

An invesment offers to pay you 12% over the next year. You expect inflation to be 2.5% over that same year. How much will your purchasing power increase if you make this investment?

  You wish to retire in 20 years at which time you want to

you wish to retire in 20 years at which time you want to have accumulated enough money to receive an annual annuity of

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