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You are bullish on Telecom stock. The current market price is $48 per share, and you have $9,600 of your own to invest. You borrow an additional $9,600 from your broker at an interest rate of 3.0% per year and invest $19,200 in the stock.
a. What will be your rate of return if the price of Telecom stock goes up by 5% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)
Rate of return %
b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. (Round your answer to 2 decimal places.)
Stock price falls below $
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Should the state require separate licenses for each type of property -- residential, commercial, industrial, etc, that a sales associate chooses to specialize i
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What about the discrepancy in the number of claims (30 versus 36)? Is there a problem there also?
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Your firm has a $250,000 bond issue outstanding. These bonds have a 7% coupon, pay interest annually, and have a current market price equal to 103% of face value. What is the amount of the annual interest tax shield given a tax rate of 35%?
You are expecting a tax refund of $5,000 in 4 weeks. A tax preparer offers you an "interest-free" loan of $5,000 for a fee of $50 to be repaid by your refund check when it arrives in 4 weeks. Thinking of the fee as interest, what simple interest rate..
Assuming a 7 percent annual compound interest rate, what will be the balance in the account at the close of business on July 1, 2020?
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