You purchased 100 shares of common stock on margin for $30 per share. The initial margin is 50%, and the stock pays no dividend. Your rate of return would be __________ if you sell the stock at $40 per share. Ignore interest on margin.

Q: You invested in 800 shares of stock for $49.20 a share. The initial margin requirement is 65 percent…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Willa invests in a stock of company X which expects no growth in dividends. The company paid a $2.75…

A: Given: Dividend = $2.75 Required return = 10%

Q: You are bullish on IT stock. The current market price is OMR70 per share, and you have OMR8,000 of…

A: Since more than one question is posted at a time the answer for first question will be provide only…

Q: Shares in OKComputer currently trade at $63.41. Your broker allows you to short sell the shares with…

A: Initia Margin is the amount trader needs to deposit with broker for trading securities Maintenance…

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 purchase 200 shares for $50 a share, and after a year the price rises to $70. What is…

A: Hence, the question has been solved in detailed explanation manner.Explanation:The breakdown of your…

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: You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50%…

A: no of shares = 300  price per share = 30 total = 300*$30 = 9000 50 % margin required on short sale…

Q: Suppose you decide that the Bear Company stock is selling at too high a price at its current $50 per…

A: Total Profit/loss is amount of gain/loss per share multiplied with number of shares

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Geometric average rate of return will be calculated considering return in each period. Following is…

Q: Don't provide handwritten soluton.   You are bullish on Telecom stock. The current market price is…

A: Trading on margin is a financial strategy where an investor borrows funds from a broker to purchase…

Q: You are thinking of purchasing a cumulative, convertible preferred share with a stated dividend of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy…

A: A margin account refers to an account used for purchasing securities where the investor has to pay…

Q: purchase You pur snares of Company mmon stock on margin at $30 per share. Assu e initial margin is…

A: There are various sources that are used by the company in order to raise the finance, One of them is…

Q: ares of a fictional company called Harasser Flasher Inc. at $20. The share subsequently drops at…

A: When you short sell your position than you will get profit if the prices fall down.

Q: Suppose that TSLA’s current share price is $20. You buy 1,000 shares using $15,000 of your own…

A: Rate of return is percentage amount of earning after holding the shares for one year including cost…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: Rate of return refers to the minimum return that is being earned by an investor over an investment…

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: In this question, we are required to determine the price per share of the company's stock.

Q: Shares in OKComputer currently trade at $31.76. Your broker allows you to short sell the shares with…

A: As per the given information: Current price of shares - $31.76Initial margin - $60.00%Maintenance…

Q: You purchased one hundred shares of MSFT for fifty dollars per share using a sixty percent initial…

A: A margin account refers to a brokerage account where the investor only has to provide a part of the…

Q: rice of Home Depot stock is trading for $325 per share. You believe the price is too high. If the…

A: When you trade in the stock market than purchase at right price is important because other wise you…

Q: ares in OKComputer currently trade at $45.33. Your broker allows you to short sell the shares with…

A: Brokers provide margins to clients in the forward and futures so that they can trade more and so…

Q: The current stock price of Sanders is at $35.  A put on Sanders stock with a strike price of $35 is…

A: Covered call is an option strategy that involves holding a long position in the underlying asset (in…

Q: Please solve in excel if possible!   You sold short 200 shares of common stock at $60 per share.…

A: Initial Margin is required when traders wants to trade in large amount with minimum deposit made…

Q: You sell 100 shares of stock short for 40$ per share. You want to limit your loss on this…

A: The question is based on the concept of trading in stock market, investors can use different methods…

Q: You purchased 250 shares of common stock on margin for $25 per share. The initial margin is 80%, and…

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

Q: uppose that Nintendo Co., Ltd. (NTDOY) is currently trading at $180 per share. Mark buys 200 shares,…

A: Brokers provide margins to client for trading and so that they can trade more and so that client and…

Q: You are bearish on Ali baba’s stock and decide to sell short 100 shares at the current market price…

A: Given Information: Current market price = $50 Number of shares = 100

Q: 1) A reasonable way to put a value on a share of stock is to discount the stream of expected future…

A: Value per share= PV of future dividend

Q: You purchased 269 shares of common stock on margin for $45.22 per share.  The initial margin is 50%…

A: Using the rate of return formula

Q: What is the “total return” on your investment?  (remember, total return is more than ju

A: Purchase price=$10 selling price $11 dividend paid $1

Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now,…

A: IRR is the break-even rate of return at which the present value of cash flow is equal to the initial…

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: Suppose you sell short 200 shares of BP ADR currently selling at $40 per share. You give your broker…

A: In short selling one does not hold stock but promises to buy at lower prices later and this is…

Q: Suppose you short-sell 1000 shares of AOT stock at $30 per share. Assume further the initial margin…

A: Short selling is a financial strategy where an investor borrows a security, typically a stock, and…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Purchase Value = No. of shares * Share price  Purchase Value = 100 shares * $100 = $10000

Q: You have $50,000 to invest. You want to either invest it all in one stock, or in options. The stock…

A: Stocks represent ownership in a company and are bought and sold in the stock market. They can…

Q: Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per share. A dividend…

A: Gain on Sale = Sale Price of Shares - Cost of acquisition of Share - Transaction cost

Q: You bought a share of Pacebook stock for $20 at the beginning of the year. Pacebook stock paid…

A: Holding period return is that return which is earned by the investor during the holding period of…

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: Recent dividend (D0) = $3.53Constant growth rate (g) = 4.2% or 0.042Expected Dividend (D1) = D0 × (1…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: The interest rate at which banks and other financial organizations lend and borrow money from one…

Q: The margin requirement on a stock purchase is 30%. You fully use the margin allowed to purchase 200…

A: The term stocks or shares refers to the equity security that is issued by the company to raise…