Compute for the following problems. Show your solution. Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to Php55 per share, what is your percentage gain on the initial equity? . In problem 1, what would the percentage loss on the initial equity be if the price had decreased to Php28?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Compute for the following problems. Show your solution. Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to Php55 per share, what is your percentage gain on the initial equity? . In problem 1, what would the percentage loss on the initial equity be if the price had decreased to Php28? In 2015 Carlo Elise have several stocks that make-up his portfolio. Stock A with a price of P275.50 and shares outstanding of 2,500, for Stock B with a market value of P140,625.00 with 1,500 shares, for Stock C that has a market value of P279,450.00 at P155.25 and Stock D that has 150 shares outstanding with a market price of P475.00. In 2016, shares prices of Stock A and D go up by 20% while the others go down by a similar rate with additional purchase of 500 and 750 stocks for B and C respectively except for stock E that stays the same with a market value of P138,125 at 2,500 shares. a. How much is the total market value of the index for 2015? b. In 2015, what is the shares outstanding for Stock C? c. In 2015, how much is the total value for Stock D? d. In 2015, what is the price for Stock B? e. What is the weight assigned in 2015 for Stock A? f. What is the weight assigned in 2015 for Stock B? g. What is the weight assigned in 2015 for Stock E? h. In 2016, how much is the total value for Stock C? i. In 2016, how much is the total value for Stock D? j. What is the weight assigned in 2016 for Stock A? k. What is the weight assigned in 2016 for Stock B? l. What is the weight assigned in 2016 for Stock E? m. How much is the total market value of the stocks for 2016?
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