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.  %

Joyce has never invested in shares before. She has come to you, as a prospective finance graduate, for some advice. In your conversations with Joyce, you have determined her Required Rate of Return (RRR) to be 8.75%.   b) Determine the value of a share in CCC Ltd. if in the current year they paid a dividend of $4.25 and this is not expected to change into the foreseeable future.      Show formula, variables, calculation and a concluding statement in your response.

Becky Martinez owns stock in GBX Corporation. The GBX stock has a current market value of $70 a share. If Becky receives $1.40 a year in dividends, what is the dividend yield?

After reading this chapter, it isn't surprising that you're becoming an investment wizard. With your newfound expertise, you purchase 100 shares of KSU Corporation for $29.52 per share. Assume the price goes up to $36.77 per share over the next 12 months and you receive a qualified dividend of $0.69 per share. What would be your total return on your KSU Corporation investment? Assuming you continue to hold the stock, calculate your after-tax return. How is your realized after-tax return different if you sell the stock? In both cases assume you are in the 25 percent federal marginal tax bracket and 15 percent long-term capital gains and qualified dividends tax bracket and there is no state income tax on investment income. Your total rate of return on your KSU Corporation investment is % (Round to two decimal places.) Assuming you continue to hold the stock, your after-tax rate of return is%. (Round to two decimal places) Your realized after-tax rate of return if you sell the stock is%.…

STL inc will pay a $75 per dividend next year, followed by a last dividend of $30 per share in the year after. Sue has 50 shares in STL Inc. She wishes to limit her income from investments to no more than $35 in the first year. how  can she achieve this goal through homemade dividends if the required return on STL Inc’s shares is 9%. What will Sue’s earnings be in the second year?

Claire Gerber wants to buy 100 shares of Google, which is selling in the market for $548.66 a share. Rather than liquidate all her savings, she decides to borrow through her broker at 5 percent a year. Assume that the margin requirement on common stock is 50%. If the stock rises to $625 a share over the next year, calculate the dollar profit and percentage return that Claire would earn if she makes the investment with 50% margin. Contrast these figures to what she'd make if she uses no margin. Calculate the dollar net profit. Round the answers to the nearest dollar. Without Margin With 50% Margin     Calculate the return on investment. Round the answers to two decimal places. Without Margin With 50% Margin

Sooner-than-Later (STL) Inc. announces that it will pay a $75 per dividend next year, followed by a final dividend of $30 per share in the year after. Mrs. Donna Holder has 50 shares in STL Inc. She wishes to limit her income from investments limited to $35 in the first year. Demonstrate through relevant computations, how she can achieve this goal through homemade dividends if the required return on STL Inc’s shares is 9%. What will be Mrs. Holder’s earning in the second year?

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…

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