User Account

All Pages

What will be the rate of return on investment

Assignment Help Financial Accounting
Reference no: EM132892481

You purchased 200 shares of ABC company at $50 each with an initial margin of 50%. The broker will charge 10% interest on the money you borrowed.

Problem (a) Now suppose the price of ABC company rises by 10% next year. What will be the rate of return on your investment? (Assume stock does not pay dividend)

Problem (b) Suppose the maintenance margin is 25%. How far the price should fall to get a margin call? (Assume price falls immediately)

Reference no: EM132892481

Questions Cloud

Planning a sales analysis system : In planning a sales analysis system, one must consider that information needs vary from district sales manager to regional sales manager to vice president of sa
What is the carrying value of only investment in one company : What is the carrying value of Only's Investment in One Company account on December 31, 2020? Only Company acquired 30% of the outstanding ordinary
What is the amount transferred to the cost of goods sold : If Comfy Home uses the FIFO method for recording their inventory, what is the amount transferred to the cost of goods sold account
Differences between kant and bentham on topic of punishment : What the key differences between Kant and Bentham on the topic of punishment.
What will be the rate of return on investment : Now suppose the price of ABC company rises by 10% next year. What will be the rate of return on your investment? (Assume stock does not pay dividend)
Hedge the exchange rate exposure : A mining company in Australia has entered into a contract to export iron ore into China with delivery in three months' time.
What is the irr of an investment : Question - What is the IRR of an investment of 2 million with a yearly savings of 500,000 for 10 years and a cost of capital of 14%
Western forest service-forest cover type data set codebook : Murphy's law, "If it can go wrong, it will," can also be applied to research. Because we're only human and prone to making errors, it's helpful to document our
Woolworths group analysis : Describe the Woolworths group, so your manager has a comprehensive understanding of its operations. Woolworths group

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd