A year ago, Kim Altman purchased 240 shares of BLK, Inc. for $35.00 on margin. At that time the margin requirement was 30 percent. If the interest rate on borrowed funds was 6 percent and she sold the stock for $43.50, wh is the percentage return on the funds she invested in the stock? Round your answer to two decimal places. %
Q: oni i fiton ten a notio erit ferit vtilis 019911 Task 1: A U.S.-based company imports furniture from…
A: An importer has to make foreign currency payment in the future and is prone to the risk of…
Q: Two companies are in the retail sales business, but their performance results are different, which…
A: There are two types of companies, one which is well organized and the other which is offering…
Q: The Warren Watch Company sells watches for $22, fixed costs are $145,000, and variable costs are $11…
A: As per guidelines, we are supposed to answer only 3 sub-parts. a). Firm's gain or loss is calculated…
Q: 12. A firm has a total market value of £30,000. It borrows £7500 at 8% interest rate. If the return…
A: Cost of Equity can be calculated as = (Earning for Equity Shareholder / Market Value of Equity) x…
Q: A. 5.01% B. 11.45% C. 24.05% D. 20.04%
A: In perpetuity there are payments that are paid forever and there is no gap in payments and they are…
Q: Wingler Communications Corporation (WCC) produces airpods that sell for $28.60 per set, and this…
A: Earning per share refers to the price of one share in the stock market of the company at which price…
Q: A company with four equal share co-founders creates an Employee Stock Option Pool including up to…
A: Employee stock options are options given by companies to employees to purchase company shares at…
Q: u are an investor who wants to express a long bias in stock XYZ between now and June expiration. You…
A: Call options gives the opportunity to buy the stock on maturity by doing payment of small premium…
Q: y, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company…
A: The company provides the credit the customers to motivates the sales but also gives them discounts…
Q: (15) The is the stock price minus exercise price, or the profit that could be attained by immediate…
A: An in the money call option is one which is making profit and the spot/stock price is above the…
Q: se the following information to answer questions 19 through 30: Currently, OET Corporation sells…
A: The NPV is the one of capital budgeting methods in the finance that is being used to asses the…
Q: All of the following are municipal notes EXCEPT A.PN B. TRAN C.AON D. CLN
A: A municipal note is like a bond issued by a local government which promises to pay a certain amount…
Q: Wade and Wanda Publishing Company is considering an upgrade to the printing facility that produces…
A: When someone invests in a business or an asset, the return is negative until the entire investment…
Q: Yellow Submarine, Co. has a cost of equity of 10.99 percent, a cost of debt of 5.44 percent, and a…
A: Cost of equity (Ke) = 0.1099 Cost of debt (Kd) = 0.0544 Tax rate (T) = 0.21 Weight of debt (Wd) =…
Q: For the table, can I please get the manual workings and not the excel sheet for the nine line items,…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: compute the variable cost per unit if variable manufacturing cost per unit is 75.5 and variable…
A: Variable manufacturing cost per unit = 75.5 Variable selling cost per unit = 37.6 Variable cost…
Q: You would like to buy a house and are thinking about your budget. You have $50,000 in cash that you…
A: A mortgage is a loan that is taken for the purchase of a property with the property itself acts as…
Q: e to sell its 4-year-old roaster for $35,200. The existing roaster originally cost $59,400 and was…
A: The initial investment to be made in the projects depends on the purchase price of new machine and…
Q: Pinto.com has developed a powerful new server that would be used for corporations’ Internet…
A: The process through which an entity decides whether to opt for a particular investment or not is…
Q: when the market value of preferred shares is $ 2850000 & cost per share is $125 per share determin…
A:
Q: 2. Suppose Grandma wants to accumulate $100,000 for her grandchild's college education in 18 years.…
A: Today value required is the today equivalent amount of the future amount based on the time period…
Q: nit Sales Price: $100 Unit Buying Price: $ 34 Unit Sales Premium: $ 6 Annual Rent Cost:…
A: Break even quantity is quantity where all cost are covered and there is no profit and loss situation…
Q: You can afford monthly deposits of $220 into an account that pays 3.3% compounded monthly. How long…
A: According to bartelby guidelines, if multiple questions are asked, then 1st question needs to be…
Q: Using the data from Table 12.3 The volatility of the portfolio is what is the volatility of an…
A: Portfolio variance and standard deviation with two security With weight of security 1 (W1), weight…
Q: LO 2 7. Bond Yields. Stein Co. issued 15-year bonds two years ago at a coupon rate of 5.4 percent.…
A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…
Q: DVD's Forever has seen its business decline. It recently paid a dividend of $1.80, but this dividend…
A: Solution: Given, Dividend paid = D0 = $1.80 Since , the expected dividend is decreased by 6%…
Q: You are considering the purchase of futures on the Russell 2000. At what point would you get a…
A: Margin call refers to the additional funds that are asked by the broker when the equity goes below…
Q: Question 2 Novak Ltd expects its new tennis racquet will give it a significant first mover advantage…
A:
Q: You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a…
A:
Q: A $10000 bond with a coupon rate of 8.2% payable semiannually is redeemable after an unspecified…
A:
Q: you invest $10,000 in an account that earns an APR of 5% with monthly compounding, what will be the…
A: More is the compounding than more will be effective interest rate and more interest will collect…
Q: Interest of $429.48 was charged on a loan of $9500 over a period of 7 months. What simple rate of…
A: Simple Interest is the method of calculation in which there is no compounding. That is ony the…
Q: unt balance of $10,000 after 5 years, what amount do you need to invest initially into an account…
A: More is compounding than more is the effective interest rate and hence more will be the future value…
Q: 16. Max and Alexandra are married and incur $5,500 of qualifying expenses to care fo their two…
A: The taxpayer is allowed to claim a deduction for expenses incurred on the dependent child care. The…
Q: In the audit of the Worldwide Wholesale Company, you did extensive ratio and trend analysis as part…
A: Wholesa;e Company Trend Analysis Depreciation expenses may be understated for the year
Q: TSC, Inc. sells for $23 and pays an annual per share dividend of $1.20, which you expect to grow at…
A: The expected return on the stock will be calculated by using dividend discounting model with…
Q: Two different machines are under consideration for a reengineering project. Machine X is expected to…
A: Given Machine X Initial cost = $74,000 Expected life = 7years Fixed cost = $10,000per year…
Q: ments of S Co. The following data were provid ntant: Receipts: Collection on sale on account Cash…
A: Sales 740000
Q: Early retirement. Lauren Johnson signs a 10-yr contract as a loan officer for a bank, at a salary of…
A: Solution: An equal amount received each period at end of period, is known as ordinary annuity. If an…
Q: An obligation can be settled by making a payment of $16,000 now and a final payment of $30,000 in 3…
A: The present value for both the options can be used as a basis for comparision between the options.…
Q: You purchased three condos for $180,000 with loan and insurance payments of $2,300 a month for the…
A: Housing expenses include Loan and interest payments, Insurance payments, Taxes, Utility bills, and…
Q: The current stock price of Sanders is at $35. A put on Sanders stock with a strike price of $35 is…
A: Covered call is an option strategy that involves holding a long position in the underlying asset (in…
Q: Lime inc. is currently keeping a constant debt policy with a perpetual debt amount of 100,000,00,…
A: A levered company is one whose capital structure consists of a mix of debt and equity. An unlevered…
Q: Consider a one-period binomial model in which the underlying is at 65 Euros, and can go up 30% or…
A: Binomial Model
Q: 0 P = $1,080,000 1 i=5% 2 3 A = $ 800,000 4 F =?
A: P stands for the present value. P is the initial investment or borrowed amount. A represents the…
Q: QUESTION 10 A Private Joint Stock Company must allocate 15% of its net profit each year to create a…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: XYZ Co is opening their new business next month. They have provided the following information:…
A: Start up cost is not a fixed cost for the company but is the initial expense which is required to…
Q: a) Jones Inc. is trying to determine how much to spend on safety equipment for its plant. The first…
A: Wealth Maximization The long-term objective of every organization is to maximize the wealth of the…
Q: 4. Which of the following statements about the current value of a short European call option on…
A: Short position means we will sell share now and buy them in future expecting the price is decreased.…
Q: ion per year (paid at the end of the year) speaking instead of writing. Assume his cost of capital…
A: Net present value NPV can be found as the difference between the present value of cash flow and…
.5
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A year ago, Kim Altman purchased 190 shares of BLK, Inc. for $27.00 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 6 percent and she sold the stock for $35.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places. %Megan bought 3 lots shares of stock at a price of $15 a share. She used her 60% margin account to make the purchase. Megan sold her stock after a year for $17 a share. She paid $10 transaction fee per transaction and $20 interest fee, what is Megan's return on investor's equity for this investment? O 67.26% 19.00% O 20.74% 10.50%Last year, you purchased 700 shares of GreenZone Energy Corp stock at $630 per share. You later sold all the shares for $675 per share. What is your holding period return on this investment? Enter your answer as a percentage rounded to 2 decimal places.
- One year ago, Bronwyn purchased 100 shares of Upgo stock at a price of $37.36 per share. The stock pays an annual dividend of $6.00 per share. Today, she sold all her shares for $28.50 per share. What is her total dollar return on this investment? Multiple Choice O O $788 O -$374 -$286 O-$1,486 $149Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold the stock for $21 per share, just after she received a $0.90 cash dividend from the company. a. What is the total dollar return earned by Nancy for the year? b. What is the rate of return earned by Nancy?An investor purchases 1,000 shares of XYZ Corp. @ $20. A year later, she sells the shares for $26. During the year, she had collected total dividends of $1.50. What percentage return did the investor earn?
- Meg bought a stock for $120/share. One year later, she sold the stock for $136.50, just after it paid an annual dividend of $3.50/share. What was Meg's total return over the 1-year holding period? O 16.7% O 11.25% O2.9% 13.75%Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%. Required:a. What is the margin in Dée’s account when she first purchases the stock? b. If the share price falls to $48 per share by the end of the year, what is the remaining margin in her account? c. If the maintenance margin requirement is 30%, will she receive a margin call?multiple choice Yes No Correct d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%. Required:a. What is the margin in Dée’s account when she first purchases the stock? b. If the share price falls to…Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%. Required:a. What is the margin in Dée’s account when she first purchases the stock? b. If the share price falls to $48 per share by the end of the year, what is the remaining margin in her account? c. If the maintenance margin requirement is 30%, will she receive a margin call?multiple choice Yes No d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
- Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received a $60.50 dividend. Earlier today, she sold the stock for $976. What rate of return did Julie earn on her investment? Round your answer to two decimal places. _______ % What were the dividend yield and the capital gains yield associated with holding the stock? Round your answers to two decimal places. Dividend yield: _______ % Capital gains yield: _______ %Assume that an investor short-sells 600 shares of stock at a price of $45 a share, making a 50 percent margin deposit. A year later, she repurchases the borrowed shares at $30 a share. How much of her money did the short-seller have to put up to make this transaction?$ How much money did the investor make, or lose, on this transaction? Ignore margin interest.$ What rate of return did she make on her invested capital (see part a)? Ignore margin interest. Round the answer to two decimal places. %One year ago, Jeff purchased 1 share of Buy-Mart stock. A share of Buy-Mart is currently priced at $205.25. Buy-Mart just paid an annual dividend of $8.53 per share. If the stock's percentage return was -5.56% over the past year (from one year ago to today), what was the price of the Buy-Mart share when Jeff bought it? O $217.33 (plus or minus $1) O $208.30 (plus or minus $1) O $226.37 (plus or minus $1) O $196.72 (plus or minus $1) O none of the answers are within $1 of the correct answer