User Account

All Pages

What will be your rate of return if the price

Assignment Help Accounting Basics
Reference no: EM132985764

Question: (1) Suppose that stock A currently is selling at $50 per share.

You buy 100 shares using $3,000 of your own money, borrowing the remainder of the investment from your broker, the maintenance margin ratio is 30%.

The rate on the margin loan is 10% per year, and the commission cost is 0.5% of the transaction value. What will be your rate of return if the price of A stock goes up by 10% during the next one year ? Assume that A pays $2 per share dividends during this period.

Reference no: EM132985764

Questions Cloud

What would normally give in duties as a public accountant : What would normally give in duties as a public accountant. Polo Babywear Ltd was formed on 30 August 2013 and its first financial year ended on 30 June 2015.
How did the key principles of due care develop : How did the key principles of 'due care' develop through the Kingston Cotton Mill Co. case, the London and General Bank case and the Pacific Acceptance case?
Prepare and extract of both p & l account : Prepare and extract of both P & L account and Balance sheet as at 31 Dec 2020
Determine the effective annual rate : Determine effective annual rate, or EAR (annual percentage yield) is? You are considering an investment that has a nominal annual interest rate of 6.30 percent.
What will be your rate of return if the price : What will be your rate of return if the price of A stock goes up by 10% during the next one year ? Assume that A pays $2 per share dividends during this period
How much money in account at the end of that time period : Account earning 6.96 percent per year, compounded semi-annually for the next 12 years. How much money will be in the account at the end of that time period?
Compute how much money have accumulated for retirement : Compute How much money have you accumulated for your retirement? You have accumulated some money for your retirement.
Comment on the trend of each of the four ratios : Modern companies are required to focus on long-term sustainable profits driving the need to actively manage environmental and social issues
Calculate the amounts of each payment for seth : Calculate the amounts of each payment. The second payment is to be twice the size of the first payment and the third payment is to be three-quarters the size.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a depreciation schedule assuming actual mileage

Compute the depreciation cost per unit and prepare a depreciation schedule assuming actual mileage was: 2012, 40,000; 2013, 52,000; 2014, 41,000; and 2015, 27,000.

  Cumulative effect of the error

Link's income statement for the year ended December 31, 2011, should show the cumulative effect of this error in the amount of:

  Discuss the entry to record the issuance of the shares

The corporate charter authorized issuance of 1,000 shares of no-par value common stock, of which 200 shares were issued

  What would be the total combined direct labor cost

If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost

  Prepare comparative statements for the 5 years

Prepare comparative statements for the 5 years, assuming that Kreiter changed its method of inventory pricing to average cost. Indicate the effects on net income and earnings per share for the years involved.

  Final record value if two-transaction method is used

A U.S. firm has purchased, for 50,000 FCs, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.80 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value if the two-transaction met..

  Determine the amount of dividends received by preferred

Determine the amount of dividends received by preferred and common shareholders from the September 30, 2020 declaration.

  How much cash will the bond investors receive

Sean Corp. issued a $40,000, 10-year bond, with a stated rate of 8 percent, paid semiannually. How much cash will the bond investors receive

  What is Agarma effective tax rate

The estimated warranty liability related to company sales in 2019 was $19,600. What is Agarma's effective tax rate for 2019

  Calculate the amount of total liabilities

The following accounts are taken from the records of Jasper Inc. at January 31, 2019, its first month of operations. Calculate the amount of total liabilities

  Journalize all entries required on the given dates

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation.

  Estimated liability under warranties

During 2010, Markel had actual outlay of $48,000 for repairs under warranty. Markel employs the expense warranty accrual method-What amount should the company report for estimated liability under warranties at the end of 2010?

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