What is the investors rate of return

Assignment Help Financial Management

Reference no: EM131332818

An investor buys $15 thousand dollars of ABT stock at $20 per share, using 51% initial margin. The broker charges 8% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.54 per share dividend each year. If the stock is sold at the end of the year at $24 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places.

Reference no: EM131332818

Questions Cloud

Confidence interval estimate of the proportion : A shoe company checks police records on 1200 randomly selected auto accidents and notes that teenagers were at the wheel in 180 of them. Construct a 90% confidence interval estimate of the proportion of shoe accidents that involve teenagers.

Explain the challenges the parents may face in daily life : Identify professional and parental interventions. Provide information for students with severe and profound ID. Identify the challenges the parents may face in daily life.

About the calculate effective interest rate : Assume Community Healthcare Provider borrowed $600,000 during the year on a credit line of $1 million with an interest rate of 9 percent with no fees. Calculate the effective interest rate?

Bonds have face value-what is their current yield : Health Foods bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?

What is the investors rate of return : An investor buys $15 thousand dollars of ABT stock at $20 per share, using 51% initial margin. The broker charges 8% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.54 per share dividend each year. If the st..

Discuss sleep in terms of the normal sleep cycle : Discuss sleep in terms of the normal sleep cycle. Please be sure to address the stages of sleep and physiological correlates associated with each stage. How does dreaming fit into our conception of a normal sleep cycle? Address theories of dreamin..

Identify the impact on operating cash flows for changes : Identify the impact on operating cash flows (increase or decrease) for changes in inventory levels (increase or decrease) for both companies for each of the three most recent years.

Confidence interval estimate of the mean daily income : A Scarf Company built a new parking garage in a business district. For a random sample of 100 days, daily fees collected averaged $1,800, with a standard deviation of $500. Construct a 90% confidence interval estimate of the mean daily income this..

Analyse the qualitative data from your pilot research : Evaluate your research in terms of the lessons learnt from the pilot study, appropriateness of the research instrument in relation to the research strategy outlined in Task 3, the reliability and validity of your results, etc - Analyse the qualita..

User Account

All Pages