1.
=(10000/25*28-10000-5000*7%)/5000
=17.00%
2.
=(10000/25*28-5000)/(10000/25*28)
=55.36%
An investor puts up $5,000 but borrows an equal amount of money from his broker to...
An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $.50-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return? 17.5% 19.67% 23.83% D. 25.75%
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places.
An investor buys $18 thousand dollars of ABT stock at $20 per share, using 54% initial margin The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin The stock pays $0.83 per share dividend each year. If the stock is sold at the end of the year at $25 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places
Dale the farmer and his brother Jake decide to sell the fam ily farm. They will use the proceeds to invest in the stock market. As they cannot agree on an investment choice, they split their money. Dale buys stock “Bull” with his half million “Bull” currently sells for $45 per share. A. What is Dale’s return if the s tock price after one year is 35, 43 or 53 dollars per share? (online fill in 4) B. If Dale...
An investor buys $15 thousand dollars of ABT stock at $20 per share, using 59% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.57 per share dividend each year. If the stock is sold at the end of the year at $21 per share, what is the investor's rate of return? You sell short 200 shares of BSX at $50 per share. You post the 50% margin...
Barbara buys 100 shares of DEM at $35 a share and 200 shares of GOP at $40 a share. She buys on margin and the broker charges interest of 10 percent on the loan. (MUST BE DONE ON EXCEL) (a) If the margin requirement is 55 percent, what is the maximum amount she can borrow? (b) If she buys the stocks using the maximum amount of borrowed money and holds the securities for a year, how much interest must she...
QUESTION 5 An investor buys $19 thousand dollars of ABT stock at $20 per share, using 52% initial margin. The broker charges 7% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.5 per share dividend each year. If the stock is sold at the end of the year at $22 per share, what is the investor's rate of return? Enter answer in percents, accurate to 2 decimal places. QUESTION 6 You sell short...
(3) An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 6% on the margin loan and requires a 30% maintenance margin. In one year the investor has interest payable and gets a margin call. What is the stock price that triggers the margin call? How much additional cash should the investor put in his account to restore the 50% initial margin after receiving the margin call? Suppose that the...
please help, show work. 5.) Jennifer has been given money for her birthday. She puts her money in a savings account offers an annual interest rate of 4.50%, compounded monthly. What is the effective annual rate (EAR) on the saving account? 6.) An individual invests $10,000 today in an investment that is expected to be worth $20,000 in 6 years. What annualized rate of return is the investor expecting to receive on the investment? 7.) A college graduate just bought...
Barbara buys 130 shares of DEM at $33.00 a share and 190 shares of GOP at $37.00 a share. She buys on margin and the broker charges interest of 7 percent on the loan. If the margin requirement is 42 percent, what is the maximum amount she can borrow? Round your answer to the nearest cent. $ If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? Round...