You purchased 250 shares of common stock on margin for $ 28 per share . The initial margin is 70 % and the stock pays no dividend but has a trading cost of $ 0.1 per share . Your rate of return would be if you sell the stock at $ 36 per share . Hgnore interest on margin

Q: An investor buys $20,000 worth of a stock priced at $25 per share using

A: Given information : Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge…

Q: You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you deposit $1,250…

A: Computation:

Q: You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per…

A: a.Calculation of Current Margin:The current margin is 42.86%.Excel Spreadsheet:

Q: You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.Assume the…

A: Nos. of stocks purchased, N = 100Price per share, P = $ 169.25 / shareTotal purchase consideration,…

Q: rate

A: Formula to calculate rate of return on shares is: Ending value of investment - Beginning value of…

Q: USE THE FOLLOWING INFORMATION FOR THE PROBLEM (1) You decide to sell short 200 shares of XCorp…

A: Short selling is a trading or investing technique that bets on the price of a stock or other…

Q: An investor short sells 100 shares of a stock for $69.38 per share The initial margin is 57%, and…

A: Sometimes, investors or a person purchase the securities by paying only some portion to total and…

Q: Assume an initial margin requirement of 50% and a maintenance margin of 30%. An investor buys 100…

A: The answer is given below:

Q: Suppose you have 1,000 common shares of Burnside Bakeries. The EPSis $6.00, the DPS is $3.00, and…

A: NUMBER OF SHARES = 1000 EPS = 6 DPS = 3 SELL PRICE  =90 STOCK SPLIT = 3 FOR 1 SPLIT

Q: Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of…

A: Year Cash Flows Description 0 -36 Purchase one share for 36    (-36) 1 -28 Receive dividend…

Q: You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share.…

A: a) The person X might not receive a margin call. Person X hired out $20000 and with another $20000…

Q: You own 200 shares of Shapard Resources' preferred stock, which currently sells for $40 per share…

A: In the given question we have two parts: In part (a) we need to compute expected return  In part (b)…

Q: Assume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5.…

A: Margin money is the minimum required money needed to trade a derivative contract. It is a percentage…

Q: Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The initial…

A: A margin call is made when an investor's equity, expressed as a percentage of the total market value…

Q: Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker. If…

A:

Q: Six months ago, you purchased 100 shares of stock in ABC at a price of $43.26 a share. The stock…

A: Given Information: Price of 100 shares = $43.26 per share Quarterly Dividend = $0.10 per share…

Q: You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per…

A: The part (b) of this question cannot be answer as the data provided is only for the shares of…

Q: You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin…

A: Given data in the problem,  No. Of shares = 100 Share price while the investor short sold = $45 per…

Q: A stock sells for $15 per share. You purchase 100 shares for $15 a share (i.e., for $1,500), and…

A: A share represents a single unit in the equity share capital. Share capital is a total of shares…

Q: You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at…

A: The percentage return that an investor is earning from a particular investment in a particular time…

Q: Jumbo Trout stock just paid a $0.71 annual dividend, the dividends increase by 1.6% annually, and…

A: The dividend Growth Model is used for the valuation of a stock’s intrinsic value or fair value,…

Q: You are selling short 1000 shares of company A, which is currently selling its shares for…

A: When shares are sold on a short sale, it means that the transaction is effected by using shares…

Q: You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for $45 a share.…

A: given, number of shares = 1000 stock price = $42 initial margin = 70% maintenance margin = 30%…

Q: the investor's required rate of return is 14 percent, the expected level of earnings at the end of…

A: Given, Retention ratio, b = 60% Return on equity, r = 16% Expected earnings, E1 = $8 Investor's…

Q: Swallow shares are currently selling for $29.80 and the company recently paid a dividend of $0.80…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share.Assume the…

A: Short sale price, P0 = $ 83.55Short sale quantity, Q = 100Proceeds from short sale, S = P0 x Q =…

Q: An investor buys $20,000 worth of a stock priced at $25 per share using 80% initial margin. The…

A: Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge = 5% Maintenance…

Q: please use Excel) Preferred stock B sells for $45 in the market and pays an annual dividend of…

A: Market price of share = $ 45 Annual dividend = $ 4.60

Q: brower bloom has preference shares outstanding that pay a dividend of R7,50 per share at the end of…

A: Preference shares are a special type of shares which pay annual dividend irrespective of the…

Q: The stock of Red's Hardware closed at $56.60 per share today. Tomorrow morning, the stock goes ex…

A: Given: Market price = $56.60 Dividend = $1.60 Tax rate = 15%

Q: An investor buys $ 20,000 worth of a stock priced at $ 25 per share using 80 % initial margin . The…

A: Given Information: Stocks purchased - $20,000 Stock price - $25 Initial margin - 80% Broker charges…

Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin…

A:

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Given information: Investment : $10,000 Stock price: $40 Initial margin: 70% Broker fees : 10%…

Q: You purchase 150 shares for $30 a share ($4,500), and after a year the price falls to $25. Calculate…

A: Given: Purchase 150 shares (Purchase price) =$30Price falls (share price after falls)=$25No. of…

Q: 15. You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70%…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: A speculator sells a stock short for $71 a share. The company pays a $2.50 annual cash dividend.…

A: Computation:

Q: Assume you buy 100 shares of stock at $40 per share on margin (40 percent). If the price rises to…

A: If the price declines to $28, then the market value of the securities will be $2,800 (100 shares x…

Q: Boone's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent…

A: Risk-free rate = 8% = 0.08 Beta = 0.90 Market premium = 7% = 0.07 Required Rate of Return (RRR) =…

Q: A preferred stock paying a dividend of 8% on a $100 par value. If a new issue is offered, costs will…

A: cost of capital for preferred stock = Annual dividend / Current Price*(1-cost of issue)

Q: You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is…

A: Holders of common stock have specific rights, common shareholders get the following privileges:…

Q: An investor buys $ 16,000 worth of a stock priced at $ 18 per share using 70 % initial margin . The…

A: The initial margin on an investment is the starting amount that an investor who wishes to open a…

Q: If you originally bought a share of stock for $27, and in one year it paid a dividend of $4 and now…

A: Given: Beginning price = $27 Dividend = $4 Closing price = $33

Q: You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and…

A: The formula used is shown: