What is your rate of return on the investment

Assignment Help Financial Management
Reference no: EM131825682

Suppose you buy a round lot (100 shares) of Dog Solutions stock on 60% margin when it is selling at $10 a share. The broker charges an 8 percent annual interest rate and commissions are one-half of one percent of the total stock value on the purchase and one-quarter of one percent on the sale. If at year end you receive a $0.10 per share dividend and sell the stock for $13, what is your rate of return on the investment?

Reference no: EM131825682

Questions Cloud

What is the level of measurement : The San Francisco Chronicle is a large newspaper published daily. What is the level of measurement for each of the following variables?
Annual continuously compounded rate of interest : what is the annual continuously compounded rate of interest?
What team leader management style would be most effective : What team leader management style would be most effective in leading a team in which you were a member?
Please assist with response to discussion comment : The borrower still owes the same amount of money, but now they have more money in there paycheck to pay off the debt faster.
What is your rate of return on the investment : If at year end you receive a $0.10 per share dividend and sell the stock for $13, what is your rate of return on the investment?
What is a command economy and a market economy : What is a command economy and a market economy. Name a country that is very market-based. What makes it a market-based economy?
How many shares of turtle can jackie purchase : How many shares of Turtle can Jackie purchase? What is Jackie's profit if Turtle’s price rises to $13?
What is the labor unit requirement associated with cloth : If the hourly wage rate is $25, and the price of cloth is $2.50 per yard. What is the labor unit requirement associated with cloth? Explain.
What is the net asset value : What is the net asset value (NAV)? what is its premium or discount as a percent of NAV?

Reviews

Write a Review

Financial Management Questions & Answers

  Assuming positive interest rates-holding other constant

Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?

  Balanced scorecard dear sir madamkindly attached find the

dear sir madam ltbrgt ltbrgtkindly attached find the assignment that i need 100 plagiarism free please let me know

  After successfully completing your corporate finance class

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. Schenkel has 385,000 shares outsta..

  How many shares need to be sold

The Dunning Co. needs to raise $65.9 million to finance its expansion into new markets. The company will sell new shares of equity via general cash offering to raise the needed funds. The offer price is $59 per share and the company’s underwriters ch..

  Directly shorten the cash conversion cycle

Which of the following actions would MOST directly shorten the cash conversion cycle? A supplier offers a firm a 3/15, net 30 discount for early payment on a $2,000 bill. What is the cost of forgoing the trade discount, assuming the financial year ha..

  What is the exchange rate between francs and pounds

If the exchange rate between francs and dollars is Fr 7.546 = $1.00, and between pounds and dollars is £1 = $1.4623, what is the exchange rate between francs and pounds?

  What is the break-even rate in case

Acme has branched out to rentals of office furniture to start-up companies. Consider a $4,600 desk. Desks last for six years and can be depreciated on a five-year MACRS schedule. Assume administrative costs drop to $360 per year. The company has just..

  Current market value of common shares

Current market value of common shares (10 million outstanding) $23.63/share Next year's expected cash dividend $1.92/share Expected constant annual dividend growth rate 8% Current market value of bonds (100,000 bonds outstanding, 8.5% coupon, maturin..

  Measurement of both systematic and unsystematic risk

Standard deviation is a measurement of both systematic and unsystematic risk. Modern portfolio theory makes the assumption that investors are risk-neutral.

  Influence the size of the interest rate on mortgage loan

Which of the following does not influence the size of the interest rate on a mortgage loan?

  What would the firm beta be if it used no debt

what would the firm's beta be if it used no debt, i.e., what is its unlevered beta, b_u?

  Compare the cost of the two projects

Compare the cost of the two projects shown below on the basis of their Capitalized costs. Use an interest rate of 10% per year.

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