What is the value of assets and equity

Assignment Help Business Management
Reference no: EM132635047

On January 1, you sold short 100 shares ofXYZ stock at $20 using a 50% initialmargin. The interest rate on the margin account is 10% annually. On April 1 (inthree-months), you covered the short sales by buying stock at a price of $15 pershare. You paid 50 cents per share in commissions for each transaction. Assumeyou received interest on all your assets, i.e. the sum of the short sale proceeds andthe margin.

a.What is the value of your assets and equity on April 1?

b.What is the total rate of return on equity?

Reference no: EM132635047

Questions Cloud

How much net income did the firm earn during the year : How much net income did the firm earn during the year?
Which should be included in the gross income : Andy and Sue are trying to calculate their gross income for their 2020 federal income tax. Which of the following should be included in their gross income?
Trades on the new york stock exchange : Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on the NASDAQ to analyze.
Show recommended optimal portfolio : The Cape Retirement Fund may only invest in the asset, Show recommended optimal portfolio based on the use of the Beta constraints indicated by the Trustees.
What is the value of assets and equity : On January 1, you sold short 100 shares ofXYZ stock at $20 using a 50% initialmargin. The interest rate on the margin account
Calculate the stock expected return and risk : Assume you are a portfolio manager at JS Global Capital Ltd. Recently you came across three attractive stocks
How to calculate the nominal payback : Seeking the nominal payback, discounted. How to calculate the nominal payback, discounted payback NPV, and IRR based off the information Eva is asking below.
Calculate the size of the level repayments : Calculate the size of the level repayments that occur after the initial 5-year interest-only period 10 years have passed, and Gerald's business is doing well
Prepare reports that discusses accounting treatment : Prepare reports that discusses the appropriate accounting treatment of the transactions noted above. The CFO would like you to not only address

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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