What will be the percentage return on your investment

Assignment Help Financial Management
Reference no: EM131010065

A stock sells for $30 per share. You purchase 150 shares for $30 a share (i.e., for $4,500), and after a year the price rises to $37.50

a. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 25 percent? Round your answer to one decimal places

b. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 50 percent? Round your answer to one decimal places.

c. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 75 percent? Round your answer to one decimal places

(Ignore commissions, dividends, and interest expense.)

please show work

Reference no: EM131010065

Questions Cloud

Does use of private judges threaten our system of justice : Some experts argue that people should be allowed to hire Judges to resolve their disputes. Just like they can hire an attorney, they can hire a Judge. Currently, Judges are appointed by the Judicial branch for a period of time. Does the use of privat..
Semiannual cashflow-bond rate : You purchase a $10,000 bond with a bond rate of 6% per year payable semiannually for 2 years. You pay $9,600 for the bond.
Determine and teach us our opinions about racial groups : Do the media (television, newspaper, radio, internet) reflect societal attitudes on different racial/ethnic groups or do the media determine and teach us our opinions about racial/ethnic groups
What are the dollar and percentage returns : You purchase 200 shares of stock at $100 ($20,000); the margin requirement is 30 percent. What are the dollar and percentage returns if you sell the stock for $112 and buy the stock for cash? you sell the stock for $60 and buy the stock on margin?
What will be the percentage return on your investment : A stock sells for $30 per share. You purchase 150 shares for $30 a share (i.e., for $4,500), and after a year the price rises to $37.50. What will be the percentage return on your investment if you bought the stock on margin and the margin requiremen..
Identify and define the first of the two concepts : Identify and define the first of the two concepts you will be applying.?- note: The definitions MUST come from either our textbook or class notes
Annual percentage rate with monthly compounding : Which account would be preferred by a depositor: an 8 percent annual percentage rate (APR) with monthly compounding or 8.1 percent annual percentage rate (APR) with semi-annual compounding?
Exclusionary rule be used to return a prisoner to prison : What if this person whom he or she is contacting was a family member? Why can some material that would normally be forbidden under the exclusionary rule be used to return a prisoner to prison or jail?
What is roberts marginal utility from his third cd : Robert is buying CDs. He receives 96 utils from his first CD, 48 Utils from his second CD, and 28 utils from his third CD. What is Roberts marginal utility from his third CD?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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