What is your annualized percentage return on investment

Assignment Help Financial Management
Reference no: EM131952860

1. You purchase 400 shares of Omni Co. stock on margin at a price of $64. Your broker requires you to deposit $15,000. Suppose you sell the stock at a price of $75. Ignoring interest on the margin loan, what is your percentage return

2. You short sold 1,000 shares of stock at a price of $54 and an initial margin of 50 percent. If the maintenance margin is 24 percent, at what share price will you receive a margin call?

3. Suppose you buy stock at a price of $48 per share. 7 months later, you sell it for $40. You also received a dividend of $0.19 per share. What is your annualized percentage return on this investment?

Reference no: EM131952860

Questions Cloud

The current spot rate : How much will you pay in USD to purchase MXN500,000 at the current spot rate?
Required to compute the taxable benefit where necessary : Advise both Charlie and Shine Homes about their fringe benefit consequences of these events. You are required to compute the taxable benefit where necessary.
What is the maximum percentage decline in stock : What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 28 percent?
Profitable operations-calculate the npv of the project : The corporate tax rate is 34 percent. The company has other ongoing profitable operations. Calculate the NPV of the project.
What is your annualized percentage return on investment : You also received a dividend of $0.19 per share. What is your annualized percentage return on this investment?
Discount cash flow calculation to determine the NPV : If the required rate of return is 0.2, conduct a discount cash flow calculation to determine the NPV.
What is effective percentage annual rate of return : The company paid a dividend of $0.25 per share the day before you sold your stock. What is your effective percentage annual rate of return?
Basket of goods and services : Suppose that a basket of goods and services in the United States costs $110 and in China the same basket costs ¥700.
What is the expected rate of nominal appreciation : What is the expected rate of nominal appreciation or depreciation of the peso relative to the dollar?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the annual financing cost of bonds

New Hampshire Corp. has decided to issue three-year bonds denominated in 5,000,000 Russian rubles at par. The bonds have a coupon rate of 17%. If the ruble is expected to appreciate from its current level of $.03 to $.032, $.034, and $.035 in years 1..

  Zero coupon bond issue-about stockholder incentives

Equity as an Option: Sunburn Sunscreen has a zero coupon bond issue outstanding with a $21,000 face value that matures in one year. The current market value of the firm's assets is $21,000. What does this problem suggest to you about stockholder ince..

  Firm cost of equity be if the firm makes the switch

What will the firm's cost of equity be if the firm makes the switch? Ignore taxes.

  How much can you sell the bond

Suppose you buy a bond on January 1st, 2012. how much can you sell the bond on January 1st, 2014?

  Compute the price and the greeks of the options

Estimate The beta of your portfolio; comment your empirical results.- The market risk and non-market risk; comment on your results.

  What was net capital spending

Bowyer Driving School’s 2014 balance sheet showed net fixed assets of $5.7 million, What was net capital spending for 2015?

  Various available corporate governance mechanisms

analyze various available corporate governance mechanisms

  Combination for rate-of-return on stock investment

Which of the following would be the best combination for Rate-of-Return on a stock investment?

  About your retirement portfolio

You are concerned about your retirement portfolio and want to start planning. You figure you will retire in exactly 42 years and then live another 30 years. During retirement, you want to be able to take out $7,000 per month for the first 15 years an..

  What is the bond modified duration

An 8%, 30-year semi-annual corporate bond was recently being priced to yield 10%. What is the bond’s modified duration?

  Continuously compounded risk-free interest rate is r

Assume the Black-Scholes framework. The continuously compounded risk-free interest rate is r is unknown, but for a non-dividend paying stock S we know: Calculate r

  What arbitrage strategy has positive profits

what arbitrage strategy has positive profits? Make sure you are state exactly what happens in each period.

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