What is your return assuming no dividends are paid

Assignment Help Business Economics

Reference no: EM13978867

Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your position. What is your return assuming no dividends are paid?

Rate of retrun _%

Reference no: EM13978867

Questions Cloud

Managerial accounting from a provider perspective : You have been immersed in the world of managerial accounting (i.e., cost accounting) for seven (7) weeks. What is your assessment of cost/managerial accounting from a provider perspective?

Assess the immediate staffing needs at bnh : Blumberg's Nursing Home (BNH) is a 100-bed Medicare and Medicaid certified facility in suburban Philadelphia, PA. The administrator recently terminated the facility's Director of Nursing (DON), receptionist, and dietary aid for inappropriate condu..

Considering using some debt-capital structure : Gator Fabrics Inc. currently has zero debt (i.e., wd = 0). It is a zero growth company, and additional firm data are shown below. Now the company is considering using some debt, moving to the new capital structure indicated below. If this plan were c..

Assignment on start-up budgeting : For this assignment, you will decide what type of budget to implement for a start-up company. Write a three to four (3-4) page paper in which you: 1. Summarize the type of manufacturing company you plan to start up and determine how you will design ..

What is your return assuming no dividends are paid : Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your positi..

Analyzing and monitoring the organization environment : Examine the various tools and techniques for analyzing and monitoring the organization's environment. First define the tool or technique; then, provide a scenario in which this tool would be beneficial to the healthcare organization

Receive a margin call if the maintenance margin : You decide to buy 1,600 shares of stock at a price of $64 and an initial margin of 50 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 35 percent?

Net present value-independent projects : Net present value-Independent projects. Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each is acceptable.

Advertising-administrative costs-rent of production facility : Foods Inc (FI) sells 5 million units per year of its only product (SuperFood) through a major retailer. SuperFoods’ retail price is $5 per unit which included a margin to the retailer of 20%. alculate SuperFoods’ per unit variable cost, Calculate Su..

User Account

All Pages