What is your effective annual percentage rate of return

Assignment Help Financial Management

Reference no: EM131953084

You've just opened a margin account with $10,000 at your local brokerage firm. You instruct your broker to purchase 450 shares of Smolira Golf stock, which currently sells for $41 per share. Suppose the annual call money rate is 6 percent and your broker charges you an annual spread of 1.25 percent over this rate. You hold the stock for six months and sell at a price of $46 per share. The company paid a dividend of $0.25 per share the day before you sold your stock.

What is your effective annual percentage rate of return?

Reference no: EM131953084

Questions Cloud

What is the bank cost of preferred stock : Calculating Cost of Preferred Stock. Sixth Fourth Bank has an issue of preferred stock with a $4.20 stated dividend that just sold for $93 per share.

Calculating key stock performance metrics : Calculating key stock performance metrics The Morton Company recently reported net profits after taxes of $16.4 million. It has 2.5 million shares of common.

Trust services-financial and estate planning : What other services might you need, such as a safe-deposit box, brokerage account, trust services, or financial and estate planning?

What would the value be : Calculating Annuity Present Value [LO1] An investment offers $5, 500 per year for 15 years, with the first payment occurring one year from now.

What is your effective annual percentage rate of return : What is your effective annual percentage rate of return?

Discuss the mechanisms and costs that are involved : Consider society as a business that takes steps to protect itself from the harm of illegal acts. Discuss the mechanisms and costs that are involved.

What new and innovative mechanisms we often find in the news : What new and innovative mechanisms, laws, or practices could corporate America put in place to address the corporate misconduct that we often find in the news?

Discuss the accuracy of the statement : Discuss the accuracy of the following statement: Formal strategic planning systems are irrelevant for firms competing in high technology industries.

What is this worth in today dollars at retirement : You save a separate $8,000 per year for the next 46 years. What is this worth in today's dollars, at retirement?

User Account

All Pages