What would have been the return if investor had not bought

Assignment Help Financial Management
Reference no: EM131956671

An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at which time the investor sold the stock.

If the margin requirement is 50 percent and the interest rate on borrowed funds was 6 percent, what would be the possible maximum percentage return on the investor's funds (excluding commissions)?

What would have been the return if the investor had not bought the stock on margin?

Reference no: EM131956671

Questions Cloud

Compute the current yield on both bonds : Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
What is your estimate of the firm cost of common equity : Five years ago the firm paid $1.99 per share, and dividends are expected to grow at the same annual rate in the future as they did over the past five years.
Calculate the effective borrowing cost paid by the investor : The investor has agreed a purchase price of $7,500,000 and intends to hold the building for five years.
Please create objectives based on the principle : Using the basis of a healthy nutrition program, please create objectives based on the principle of SMART OBJECTIVES.
What would have been the return if investor had not bought : An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at which time the investor....
Describe strategies to protect the information : What role does risk assessment play in the information protection function?
How growing influence leads higher dependence of human body : How growing influence of technological advancements in medicine production leads to higher dependence of the human body to maintain these substances in our syst
Define and contrast critical information : Define and contrast critical information, proprietary information, and intellectual property.
Organization that you believe creating a positive change : Identify an organization that you believe creating a positive change is needed. Apply the framework for leading positive change

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