Answered: Jim purchased 100 shares of stock at a…

Jim purchased 100 shares of stock at a price of $ 32 a share. He utilized his 90% margin account to make purchase. Required What is Jim's initial equity in this investment?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 5BCRQ

See similar textbooks

Related questions

Q: Harry purchases 1,000 shares at the price of $44 using his margin account. If the initial margin is…

A: Number of shares = 1000 Initial Purchase Price = 44 Initial Margin = 50% Maintenance Margin = 45%…

Q: Last year, Carlotta bought five shares of Spot-Off Cleaners for $85 each. During the year, Carlotta…

A: Dividend Yield refers to the amount of dividend paid on each stock. It is usually calculated in…

Q: Investor A makes a cash purchase of 100 shares of AB&C common stock for $78 a share. Investor B also…

A: commission on purchase ( for each) =3%*7800=243 commission on sale=@69 = @55=110 @60=120 @70=140…

Q: Last year, Julie Johnson bought one share of com- mon stock for $950. During the year, Julie…

A: a) Rate of Return on her Investment = (Sell Price - Purchase Price + Dividend Received) / Purchase…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Investment transactions in 20X0 : On March 20, Purchased XYZ Co. ordinary shares = 1000 shares Share…

Q: Jarvis bought a share of stock for $18.75 that paid a dividend of $.45 and sold three months later…

A: Dividend is the share of profit that a company pays to its share holders. The dividend value is pre…

Q: ou purchased 1,500 shares of stock in Natural Chicken Wings, Inc., at a price of $43.67 per share.…

A: Given information : Total number of shares 1500 Price of stock $ 43.67 Dividends…

Q: You purchased Butterfly Wing Corporation stock exactly one year ago at a price of $79.40 per share.…

A: Purchase price of stock = $ 79.40 Annual dividend = $ 3.28 Total return = 16.50%

Q: "Yesterday travis sold 1,000 shares of stock that he owned for $29 per share. travis purchased the…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: Mr. Johnson owns $300 shares of NYCO’s preferred stock which currently sells for $30.00 per share…

A: Given: Number of shares holding = $300 Current price = $30 Dividend per share = $2

Q: Two years ago you purchased 100 shares of ABC Corp. common stock for $8,000. Today ABC did a stock…

A: Some times companies are split their shares into a specific ratio. Under this question ABC corp.…

Q: Michele bought 850 shares of APPLE at the 52 week low and sold the shares at the 52 week high shown…

A: Given Information Number of Shares bought of Apple =850 Purchase shares at 52 weeks low and sold the…

Q: Assume Edward purchased 100 shares of Tesla stock immediately after COVID-19 lockdowns were…

A: The question is related to Dividend Policy. The expected return is calculated as under Expected…

Q: On October 30, 2015, Tess bought 500 shares of ACTS stock for 640 pesos per share. On November 15,…

A: Dividend is an additional income that forms part of the total gain of the investor. Total gain on…

Q: A hypothetical investor purchased 200 shares of Amazing Corp. common stock at a per share price of…

A: The question is related Investment Accounting. The details are given regarding purchase and sale of…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: On March 20, 1000 shares were purchased of XYZ co. @ P80.5+ P500 On June 01, the Stock dividend…

Q: arvis bought a share of stock for $18.75 that paid a dividend of $.45 and sold three months later…

A: Sell Price = $18.65 Purchase Price = $18.75 Dividend =$0.45

Q: Mary purchased 500 shares at the price of $41 using her margin account and a 50% initial margin.…

A: amount needed at first = 0.50*41 * 500 = 10250 total value = 41*500 = 20,500 value when price falls…

Q: If an investor purchased 150 shares of Sunoco stock at $83.43 and the brokers commision was 2.5%,…

A: Stock exchange is a group of broker hence all the stocks that are bought and sold through stocks are…

Q: Sarah and James Hernandez purchased 160 shares of Cisco Systems stock at $20 a share. One year…

A: Comparing the ending value of investment with initial investment value will inform the total return…

Q: Sup has paid a dividend of $3.82 per share per year for the last 16 years. Management expects to…

A: In the context of the given question, we compute the required figures by using the Dividend price…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: The dividend for which the client is entitled to receive is calculated on the number of shares held…

Q: Nico bought 100 shares of Cisco Systems stock for $30.00 per share on January 1, 2013. He received a…

A: In this question we need to compute the Nico's realized holding period return.

Q: Jim purchased 100 shares of stock at a price of 32$ a share. He utilized his 90% margin account to…

A: Jim purchased 100 shares of stock at a price of $ 32 a share. He utilized his 90% margin account to…

Q: Sam bought through her broker 200 Apex Mining common stock at $61.50/share. The broker charged her…

A: Total shares purchased = 200 Each cost = $ 61.50 Total cost = 200 x $ 61.50 =…

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…

Q: An investor purchased 505 shares of common stock, $23 par, for $19,190. Subsequently, 106 shares…

A: Calculation of gain / loss in the sale of shares Investor purchased 505 shares for $19190 at $38…

Q: Becky Martinez owns stock in GBX Corporation. The GBX stock has a current market value of $70 a…

A: The following information has been provided in the question: Current market value of GBX stock =$70…

Q: Bob sold 100 shares of ABC stock for $2,100 and 300 shares of XYZ stock for $8,900. He purchased the…

A: Shares are the common stocks of the corporation which gives them the ownership right.

Q: An investor who owns 100 shares of JJJ Company common stock with a cost of P120 a share received 100…

Q: Last year, Julie Johnson bought one share of common stock for $950. During the year, Julie received…

A: The rate of return that is expected by investors on their equity investment is term as the cost of…

Q: Jeff bought 100 shares of stock for $30.00 per share on 70% margin. Assume Jeff holds the stock for…

A: Return on capital invested =Total return/Invested capital Where Total return= Capital gain from…

Q: JT purchases 1,000 shares of stock at $23.50 per share in January 2006. He sells the 1,000 shares in…

A: In the given question we require to calculate the internal rate of return from the following…

Q: Nico bought 100 shares of a company's stock for $22.00 per share on January 1, 2013. He received a…

A: In this question we need to compute the Nico's Realized holding period return from the information…

Q: Curtis purchased a stock with an initial share price of $140 and sold it when the share price was…

Q: Walton decided to issue additional new common stock. Mr. Adib Rahman, an individual investor…

A: Mr. Adib Rahman an investor buy (100 shares) of this stock, from Munawar associates which is the…

Q: client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of XYZ…

A: Shareholders are those person who have own and invested in the company share and has the right in…

Q: Abigail bought 28 shares of stock at $30.00 per share. She received dividends of $49.50 during the…

A: GIVEN ÷ Purchase price per share = $30 No. Of shares purchased = 28 shares Total dividend received =…

Q: Nico owns 100 shares of Stock X which has a price of $12 per share and 200 shares of Stock Y which…

A: Given Investment in stock X = 100 shares

Q: Shaylash bought 250 shares of stock at $31.38 per share. Several months later he sold the stock at…

A: The question is based on the concept of calculation for gain or loss on the share transaction post…

Q: Today, Andrew sold 3,600 shares of Colts stock for $26.60 per share. Andrew paid $101,124 for the…

A: Calculate the total return as follows:

Q: Mary owns 5, 000 shares of stocks from Inter-Pacific Company. The shares were purchased at ₱47.45…

A: solution concept On sales of stock when selling price is greater than purchase price there is profit…

Q: Jack owns 2,000 shares of common stock in a firm with 100,000 total shares outstanding. The firm…

A: Number of shares owned by Jack=2000 Total shares outstanding=100,000 Additional shares=50,000…

Q: What is Jane's realized rate of return for the year from the stock? Answer as a percentage, 2…

A: Information Provided: Purchase price = $58.80 Dividend per share = $1.12 Selling price = $52.33

Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

Jim purchased 100 shares of stock at a price of $ 32 a share. He utilized his 90% margin account to make purchase. Required What is Jim's initial equity in this investment?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Curtis purchased a stock with an initial share price of $140 and sold it when the share price was $119. While he owned the stock, he earned $10 in dividends. What was his total percentage return on the investment?
Sarah and James Hernandez purchased 160 shares of Cisco Systems stock at $20 a share. One year later, they sold the stock for $26.40 a share. They paid a broker $22 commission when they purchased the stock and a $30 commission when they sold the stock. During the twelve month period they owned the stock, Cisco Systems paid dividends that totaled $0.24 per share. Calculate the Hernandez’s total return for this investment.
An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per share. One year later, the shares are selling for $21 each. The stock paid a dividend of $1.50 per share. What is the total percentage return on the investment?
Gary purchased 250 shares of PAC stock for $37 per share and sold this same stockone year later for $44 per share. He paid commissions of $15 when he purchased thestock and $10 when he sold the stock. Dividends of $1.50 per share were paid duringthe year. The total rate of return on this investment was ?
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.
Wanda Sotheby purchased 170 shares of Home Depot stock at $150 a share. One year later, she sold the stock for $55 a share. She paid her broker a commission of $44 when she purchased the stock and a commission of $51 when she sold it. During the 12 months she owned the stock, she received $138 in dividends. Calculate Wanda’s total return on this investment.
An investor bought 1,000 shares of ABC company at $15 per share. One year later, the investor sold the shares for $20. The investor earned dividends of $1000 over the one-year holding period. The investor also spent a total of $250 on trading commissions in order to buy and sell the shares. Calculate the HPR of the investment.
You purchased 1,700 shares of stock in Natural Chicken Wings, Incorporated, at a price of $43.79 per share. Since you purchased the stock, you have received dividends of $1.23 per share. Today, you sold your stock at a price of $48.66 per share. What was your total percentage return on this investment?
Laureen purchased 1,000 shares of Apple stock for $80 per share with an initial margin requirement of 65% and a maintenance margin of 40%. Assume the stock price falls to $30 per share, how much equity must Laureen contribute? $2 per share $8 per share $10 per share $12 per share
You purchased 1,500 shares of stock in Natural Chicken Wings, Inc., at a price of $43.67 per share. Since you purchased the stock, you have received dividends of $1.15 per share. Today, you sold your stock at a price of $47.85 per share. What was your total percentage return on this investment
An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per share. One year later, the shares are selling for $21 each. The stock paid a dividend of $1.50 per share. What is the total percentage return on the investment? Group of answer choices -6.76% 0.00% 6.76% 7.14%
Tammy Jackson purchased 141 shares of All-American Manufacturing Company stock at $40.50 a share. One year later, she sold the stock for $44 a share. She paid her broker a $36 commission when she purchased the stock and a $42 commission when she sold it. During the 12 months she owned the stock, she received $167 in dividends. Calculate Tammy’s total return on this investment.