User Account

All Pages

What is the rate of return on the investment

Assignment Help Finance Basics
Reference no: EM132826112

James has sold short 2,400 shares of Omega Inc. at $42 per share. The initial margin requirement was 50% on the short sale. His broker requires a 35% maintenance margin. Omega pays no dividends. James earns no interest on the funds in his margin account. What is the rate of return on the investment if the price of Omega stock changes from $42 to $37?

Reference no: EM132826112

Questions Cloud

Briefly define matters which md and a should include : Hindustan Unilever Ltd. is an Indian consumer goods company. Discuss about MD&A, list down, and briefly define those matters which MD&A should include.
Project using the npv method of investment appraisal : Evaluate the project using the NPV method of investment appraisal, assuming the company's cost of capital is 10%.
Find the cost of food sold for the month of January : Find the cost of food sold for the month of January 2020 from the following information. The food inventory on December 31 2019 is 2500
Calculate the required rate of return for mars inc stock : Calculate the required rate of return for Mars Inc.'s stock. The Mars's beta is 2.0 , the rate on a T-bill is 4 percent, the rate on a long-term T-bond is 5.2
What is the rate of return on the investment : What is the rate of return on the investment if the price of Omega stock changes from $42 to $37?
Does the perception increase patient negative outcomes : What are the challenges to nurses who are generally seen as having less authority than doctors in the decision-making process related to patient care in primary
When the equipment was sold was credited with : BERNARD CORP. Statement of Financial Position, When the equipment was sold, the Buildings and Equipment account was credited with?
What is the optimal number of contracts : What is the optimal number of contracts that should be used for hedging?
What is the price per share of the box spread : To rule out arbitrage, what is the price per share of the box spread?

Reviews

Write a Review

Finance Basics Questions & Answers

  Employee participation and outcomes

First, let's discuss how the budgeting process as employed by Springfield contributes to the failure to achieve the president's sales and profit targets. What could they do differently that might lead to better employee participation and outcomes?

  What amount must person now commit to the membership

To join an upscale country club, an individual must first purchase a membership bond for $23,000. In addition, monthly membership dues are $270.

  Prepare spreadsheet financial analysis of proposed options

ACC00716 Finance Assignment - Business Case Studies, Southern Cross University, Australia. Prepare spreadsheet financial analysis of proposed options

  What was the firm eat in 2009

Slattery Corp had year-end retained earnings balances of $670,000 in 2008 and $600,000 in 2009. In 2009 the firm paid $6,000 in preferred dividends and $10,000 in common dividends. What was the Firm's EAT IN 2009?

  Assume a retention ratio of 045 and a historical return on

abc co. has the following dividend payment historyyearnbspnbspnbspnbspnbspnbspnbsp dividend2003nbspnbspnbspnbspnbspnbsp

  Defining internal control in brief

Defining internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency.

  Portfolio with a beta of 0.9 for one year

The S&P 500 Index price is $925.28 and its annualized dividend yield is 1.40%. LIBOR is 4.2%. How many futures contracts will you need to hedge a $25 million portfolio with a beta of 0.9 for one year?

  Estimate the company cost of capital what is the discount

1 a company is 40 financed by risk-free debt. the interest rate is 10 the expected market risk premium is 8 and the

  Working capital for an international project

How do you propose financing the working capital for an international project, and how are you going to manage your working capital?

  Determine foreign and domestic financing alternatives

Determine foreign and domestic financing alternatives

  Market interest rate for aaa-rated

Assume that the coupon payments are made semi-annually (at the end of each 6 months), and that the current market interest rate

  What are the five basis principles of finance

What are the five basis principles of finance? Briefly explain them.

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