User Account

All Pages

What is the investor rate of return

Assignment Help Accounting Basics
Reference no: EM133184743

Question - An investor short sells $32,000 worth of a stock priced at $40 per share using 60% initial margin. The broker charges 4% on the margin loan and requires a 35% maintenance margin. The stock pays a $.40-per-share dividend in 1 year, and then the stock is bought at $37 per share.

i. What is the investor's rate of return?

ii. What is the price at which the investor gets a margin call?

iii. How much does the investor have to deposit with their broker if they get a margin call?

Reference no: EM133184743

Questions Cloud

What is her income tax payable : An investor earns $136147 in the 2021/22 tax year. She purchases shares worth $4840 of 1 on 28 June 2021. What is her income tax payable
Determine the gross pay for the week : An employee earns $32 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Determine the gross pay for the week
Determine the amount of dividends to be paid : Determine the amount of dividends to be paid to ordinary shareholder if preference shares are non- cumulative and are participating in distributions
How low could the new lighting system annual savings be : How low could the new lighting system's annual savings be and still justify acceptance of the proposal by the board of directors if the hurdle rate is 8 percent
What is the investor rate of return : An investor short sells $32,000 worth of a stock priced at $40 per share using 60% initial margin. What is the investor rate of return
Contributing to great resignation : What are the factors contributing to the Great Resignation? What are the economic implications in terms of the labor market and the Macroeconomy as well?
Production possibility frontiers : What would be the production possibility frontiers for Brazil and the United States? What is the Marginal Rate of Transformation impact?
Price elasticity of demand for corporate-owned jets : What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?
How might artificial intelligence and big data help jason : How might artificial intelligence and big data help Jason in dealing with measurement uncertainty

Reviews

Write a Review

Accounting Basics Questions & Answers

  Should the company accept the special order

Albertine Co. manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 16,000 trophies.

  Income statement and balance sheet columns

The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet

  What amount should f capital account change

In 2020, the partnership sustained a P 33,000 loss before interest and salaries to partners. By what amount should F's capital account change?

  Prepare the stockholder equity section of beta balance sheet

Assume the balance in retained earnings is $ 100,000. Prepare the stockholders' equity section of Beta's balance sheet

  Assume that all employees were paid through

In addition the city made a contribution of $ 100,000 to the city operated pension system Assume that all employees were paid through the General Fund.

  List four of requirement an accounting system is required

List four of the requirement an accounting system is required to fulfil. Explain the concept of intellectual property law in relation in engineering work.

  Calculate the production?-volume variance

Munoz Inc. produces a special line of plastic toy race cars in batches. Calculate the production?-volume variance for fixed setup overhead costs

  Calculate the approximate dividend payout ratio

A Wall Street Journal quotation for a company has the following values: Div: $1.12, PE: 18.3, Close: $37.22. Calculate the approximate dividend payout ratio for the company.

  Prepare an answer sheet with the column headings

Transaction analysis various accounts. Prepare an answer sheet with the column headings shown here.

  Determine the effects of the events

She receives a $6,000 distribution, and her share of S corporation items includes a $2,000 long-term capital gain and a $9,000 ordinary loss. Determine the effects of these events on AAA, stock basis, and AEP.

  Calculate the net present value and payback period

Assume all cash flows occur at year-end except for initial investment amounts. Calculate the Net present value and Payback period

  What is value of ending inventory under absorption costing

Question - Inventory Valuation under Absorption Costing - What is the value of ending inventory under absorption costing

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