Assume that you bought 100 shares of stock X at $50 per share in your margin account that has an initial margin of 60%. What would be the actual margin if the price rises to $70?
Q: James has two job offers. Massy offers James the job with an initial annual salary of $38,800.00…
A: Annual income refers to the amount of money an individual or organization earns within a year,…
Q: At the end of every year an investor pays £2,000 towards additional voluntary contributions to build…
A: A pension fund is a type of investment fund that is set up to provide retirement income to employees…
Q: A firm's common stock has just paid a $3.00 dividend (Do), which is expected to grow at a constant…
A: Step 1 An asset's value is determined by its intrinsic value. This metric is determined using an…
Q: A financial analyst is attempting to assess the future dividend policy of Environmental Systems by…
A: Here,
Q: A contract can be fulfilled by making an immediate payment of $3760, or equal payments at the end…
A: Present value is a financial concept that represents the value of a future sum of money in terms of…
Q: Health Systems Inc. is considering a 15 percent stock dividend. The capital accounts are as follows:…
A: Here, Number of Shares before stock dividend is 100 % of Share increases is 15% Previous Level Cash…
Q: Kilroy Enterprises' bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon…
A: In the given case, we have provided the current selling price of bond along with par value of bond.…
Q: ck has just paid an annual dividend of $3.00 (Do), and that this dividend is expected to grow by…
A: Banko growth model-Under this model, dividend increase by the same dollar amount in each year.…
Q: A company has to invest in equipment which costs $2,500,000 and will be depreciated under the MACRS…
A: The Modified Accelerated Cost Recovery System (MACRS) is a method of depreciation used for tax…
Q: Kinston Enterprises has a debt obligation of $47 million that is due now. The market value of…
A: Debt = d = $47 million Assets = a = $102 million Old number of shares outstanding = on = 5 million
Q: firm z has issued 1000000 bonds. each bond is priced at $929 and has a face value of $1000. it pays…
A: Information Provided: Price of bond = 929 Face Value = 1000 Annual Coupon = Coupon Rate * Face…
Q: For the period beginning October 14, the average daily balance on Perry’s credit card was $810. If…
A: The credit card is a debt instrument that provides its holders with the ability to use funds for…
Q: Discuss the unresolved academic issues in capital structure decisions and make suggestions for…
A: Capital structure refers to the way in which a company finances its operations and growth through a…
Q: Find the monthly house payments necessary to amortize the following loan. Then calculate the total…
A: 1). Monthly payment is calculated using following equation Monthly payment = A×(r/m)(1-1(1+r/m)n×m)…
Q: If the yield curve is downward sloping, what is the yield to maturity on a 30-year Treasury bond…
A: In an inverted yield curve or downward sloping, short-term bonds have higher yield than long-term…
Q: Problem 5.e: what is the internal rate of return (IRR) of project D? (Do not add the % sign to your…
A: IRR of a project is the discount rate which makes net present value of the project equals to zero.…
Q: whats part A answers im lost
A: For Part A, we need to determine the monthly payment made towards the loan. This can be determined…
Q: What is the accumulated value of periodic deposits of $6,000 made into an investment fund at the…
A: Given the following: Periodic payment, P = $6,000 Interest rate = 4.50% Period = 5 years The…
Q: Prices of zero-coupon bonds reveal the following pattern of forwa Forward Rate 4% 5 6 Year 123 In…
A: Step 1 A bond having coupons attached that reflect semiannual interest payments is known as a coupon…
Q: Problem 6.a: A manufacturing firm is considering the mutually exclusive alternatives given in the…
A: Incremental IRR (Internal Rate of Return) is a financial metric used to evaluate the financial…
Q: he buyer of a piece of real estate is often given the option of buying down the loan. This option…
A: The discount point refers to the optional fee (additional fee) that the borrower pays to the lender…
Q: Colton Corporation's semiannual bonds have a 12-year maturity, an 6.10% nominal coupon paid…
A: The bond is selling at par. Therefore, the nominal yield should be equal to the coupon rate. Nominal…
Q: A bond investor is analyzing the following annual coupon bonds: Issuing Company Johnson Enterprises…
A: The coupon rate of Johnson Enterprises' bond is lower than the yield to maturity of the bond. It…
Q: A one-year long forward contract on a dividend-paying stock is entered into, when the stock price is…
A: Here, Time Period is 1 year Stock Price is $40 Risk Free Rate is 10% Dividend Yield is 2%
Q: To complete her college education, Judy received education loans of $23,256 including interest. Find…
A: Here, Loan Amount including interest is $23,256 Time Period is 72 months
Q: Payback comparisons Nova Products has a 4-year maximum acceptable payback period. The firm is…
A: Step 1 The term "payback period" refers to the number of years needed to recoup the initial monetary…
Q: You buy a share of stock for $100 and it pays no dividend. A year later the market price is $105.…
A: Rate of return on stock with no dividend is calculated using following equation Rate of return =…
Q: Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon…
A: Time = t = 8 years Face value = fv = $1000 Coupon payment = c = $65 Interest rate = r = 6%
Q: Find the amount necessary to fund the given withdrawals. Semiannual withdrawals of $700 for 9 years;…
A: An annuity is a financial product or investment that provides a regular income stream for a fixed…
Q: (Type A) If a fully amortizing 30-year fixed-rate mortgage was originally taken at $300,000 with 6…
A: Here, Loan Amount is $300,000 Remaining Loan Amount is $100,000 Interest Rate is 6% Time Period is…
Q: Practice Questions: Liabilities are RO 1,000 and equity is half of liabilities. Find the amount of…
A: According to the balance sheet equation,Assets = Liabilities + Shareholders' equity
Q: Give typing answer with explanation and conclusion As a firm progresses through the maturity stage…
A: When ever the firm is in progressive stage they needs funds to grow the business and for this they…
Q: One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio .…
A: Step 1 An employee benefit plan that gives employees stock in the business is known as an employee…
Q: Transcontinental Pipelines is considering a technical process that is expected to reduce annual…
A: Here, Amount of reduction in Annual Maintenance Cost is $75,000 Interest Rate is 3.8% Compounding…
Q: Question 3: Assume the following expected income on the loan of $200,000: Interest Income rate on…
A: The risk adjusted rate of return determines the return on the economic capital of a bank. Economic…
Q: A 20-year annuity of forty $7,000 semiannual payments will begin 9 years from now, with the first…
A: Here,
Q: What is a “constant dollar” cash flow analysis as typically applied to mining projects?
A: A constant dollar cash flow analysis is a type of financial analysis that is commonly used in mining…
Q: Assume the following data for a stock: risk-free rate - 5 percent: beta (market) - 1.4; beta (size)…
A: Step 1 The Fama and French Three-Factor Model, often known as the Fama French Model, is an asset…
Q: Suppose you want to have $500,000.00 for retirement in 35 years. You plan to make regular monthly…
A: Future value is the value of the cash flows at the end of certain period. Future value of annuity is…
Q: A company has to make a decision about expanding its production facilities. Research indicates that…
A: As per the given information: Immediate outlay = $130,000Further outlay in 3 years= $20,000Required…
Q: Developing innovative capability needs to begin with an audit of where we are now and there are many…
A: The Statement is True
Q: the goal is to reduce monthly payments for this mortgage loan: - pv: $300,000 - down payment: 5%…
A: Monthly payment is to be paid for the repayment of the loan amount by the borrower to the lender…
Q: Pandora Media plans to issue original issue discount (OID) bonds with a 20-year maturity, $1,000 par…
A: Coupon payment on the bond is calculated in excel using PMT function with par value as FV, price as…
Q: An investor tells their broker to short 1,000 shares of a stock that is currently priced at $50. Is…
A: A trading or investment technique known as short selling makes predictions about the price decline…
Q: To insure you, Assurances Nochance Ltd offers the following plan: you will pay 20 annual payments of…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Robert has struck an agreement to buy his dad's car. The sale takes place when Robert can pay the…
A: Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful…
Q: n insurance company is offering a new policy to its customers. Typically, the policy is bought by a…
A: The concept of time value of money will be used here. Since future value has to be computed we will…
Q: How much can be paid in scholarships at the end of each half-year if $210,000 is deposited in a…
A: Interest can provide a range of benefits for investors, particularly those looking for a steady…
Q: In the country of Orcam, the velocity of money is constant. Real GDP grows by 1 percent per year,…
A: Real GDP Growth Rate = 1% Growth rate of Money Stock = 14% Nominal Interest Rate = 14%
Q: A risk-averse investor is considering two possible assets as the assets to be held in isolation. The…
A:
Pls help me in text so i will rate please help
Step by step
Solved in 2 steps
- An investor short sells 100 shares of a stock for 69.07 per share. The initial margin is 50%, and the maintenance margin is 39%. The price of the stock rises to $81.51 per share. What is the margin, and will there be a margin call? Question content area bottom Part 1 The margin in the account is ............%. (Round to the nearest percent.)You purchase 100 shares of stock for $40 a share. The stock pays a $4 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $36; (ii) $40; (iii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) b. What is your real (inflation-adjusted) rate of return if the inflation rate is 8%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.)
