On 1 June, shares in Blue.com traded at $40.82. Your broker allowed you to buy the shares on margin with an initial margin of 60.00%. You bought as many shares as you could. The broker charged you no interest on the account. Now, Blue.com shares trade at $37.40. What was your holding period return from 1 June to today? -8.38% -13.41% -5.03% -13.96%
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On 1 June, shares in Blue.com traded at $40.82. Your broker allowed you to buy the shares on margin with an initial margin of 60.00%. You bought as many shares as you could. The broker charged you no interest on the account. Now, Blue.com shares trade at $37.40. What was your holding period return from 1 June to today?
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-8.38% |
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-13.41% |
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-5.03% |
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-13.96% |
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- On Jan 1, you sold short one round lot (i.e. 100 shares) of ABC stock at $21/ share. On Mar 1, adividend of $2/ share was paid. On Apr 1, you covered the short sale by buying the stock at aprice of $15/ share. You paid $0.5/ share commission for each transaction. What is the finalvalue in your account on Apr 1 (end of day)?You purchase 460 shares of stock at $37.60 per share. Several months later you sell the shares at $33.10. Your broker charges 2% commission on round lots and 3% on odd lots. Calculate the gain or loss (in $) on the transaction. Enter a number. Need Help? Read It Watch It Master ItAssume you purchased 500 shares of XYZ common stock on margin at $29 per share from your broker. A. Find the following (note: fill in the blanks with values rounded to the nearest cent, no dollar signs "$", and commas "". Example: $1,234.567 >>> write as 1234.57) If the initial margin is 57%, the amount you borrowed from the broker is $ and your equity is $ B. What is the new margin if the price of share falls to $31? (note: fill in the blank with rounded % as follows: example 34.567% >>> write as 34.57%)
- a) You purchase 516 shares of ABC Co. stock on margin at a price of $37. Your broker requires you to deposit $12,300. What is the initial margin requirement in percent? Answer to two decimals. b) You purchased 391 shares of PQR, Inc., stock on 56% margin when the stock was selling for $34.46 a share. The stock is currently selling for $33.54 a share. What is your current equity position (in $)? Answer to two decimals. c) You purchase 639 shares of XYZ Co. stock on margin at a price of $27. Your broker requires you to deposit $6,535. A month later, you sell the stock at a price of $28. What is your return in percent? Answer to two decimals. d) Tom purchased 549 shares of stock on margin for $28.52 a share and sold the shares 3 months later for $28.34 a share. The initial margin requirement was 71 percent and the maintenance margin was 29 percent. The interest rate on the margin loan was 5 percent. He received no dividend income. What was his holding period return (in percent)? Answer to…On January 1, you sold short one round lot (i.e., 100 shares) of Four Sisters stock at $21 per share. On March 1, a dividend of $2 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. What is the value of your account on April 1?On January 1, you sold short one round lot (that is, 100 shares) ofFour Sisters stock at $21 per share. On March 1, a dividend of $2 per share was paid. OnApril 1, you covered the short sale by buying the stock at a price of $15 per share. You paid50 cents per share in commissions for each transaction. What is the value of your accounton April 1?
- During the month, Blue, Inc. purchased 1,050 shares for $7.00 per share and classified them as trading investments. At the end of the month, the price of the securities was $11.25 per share. What adjusting entry, if any, will Blue, Inc. record when it closes its books at the end of the month to reflect this change in value?ᐧ a Dr. Valuation Allowance for Trading Investments $11,812.50 Cr. Unrealized Gain on Trading Investments $11,812.50 b Dr. Unrealized Loss on Trading Investment $4,462.50 Cr. Valuation Allowance for Trading Investments $4,462.50 c Dr. Valuation Allowance for Trading Investments $4,462.50 Cr. Unrealized Gain on Trading Investments $4,462.50 Because the trading investments were not sold during the month, no adjusting entry is required. d Dr. Valuation Allowance for Trading Investments $4,462.50 Cr. Realized Gain on Trading Investments $4,462.50At the beginning of the year, you purchased a share of stock for $51.64. Over the year the dividends paid on the stock were $3.26 per share. Calculate the return if the price of the stock at the end of the year is $50.24. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))Assume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5. The stock paid dividends during the period of $2.5. and you did not remove any money from the account before making the offsetting transaction. The interest is 7% if price at time of covering your position reached48. maintenance margin is 0.32 percent, calculate what is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin callwhat is your account value what is your equity what is your equity after price changes'? what is your actual margin at what price the broker will give you a margin calle what is your return
- Kathy Snow wishes to purchase shares of Countdown Computing, Inc. The company's board of directors has declared a cash dividend of $0.80 to be paid to holders of record on Wednesday, May 12. a. What is the last day that Kathy can purchase the stock (trade date) and still receive the dividend? b. What day does this stock begin trading ex dividend? c. What change, if any, would you expect in the price per share when the stock begins trading on the ex dividend day? d. If Kathy held the stock for less than one quarter and then sold it for $39 per share, would she achieve a higher investment return by (1) buying the stock prior to the ex dividend date at $35 per share and collecting the $0.80 dividend or (2) buying it on the ex dividend date at $34.20 per share but not receiving the dividend?At the beginning of last year an investor purchased 300 shares of common stock from MRP Corporation at $20 per share. During the year, the firm paid dividends of $1 per share. At the end of the year, the investor sold the 300 shares at $21 per share. What is the rate of return?a.) 20%b.) .1%c.) 10.00%d.) 1.10%You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $172.58. If the broker’s call loan rate is 2.00%, what is your return on equity?Note that Facebook pays no dividends.