You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin requirement is 60% and the commission on the sale is $50 and the broker charges 10% annual interest. AMF Corporation paid a $0.50 per share dividend while you were short the stock. After one year you cover your short sale at $35 per share with a $50 commission for the purchase. Marks 20   What is your total dollar return on this investment? What is your annual rate of return on this investment? Suppose you purchase 200 shares of Best Hat Corporation at $52 a share by making a margin deposit of 50%. If the maintenance margin is 30%, at what price will you receive a margin call

Suppose you can buy 983 shares of Vertex Pharmaceuticals Incorporated (VRTX) stock on margin at $167 per share. Your initial margin is 51% and you borrow at the 7 percent. You sell your VRTX shares 6 months later for $185 per share. There were no dividends paid and the prices reflect commissions paid. What is your percent return if you buy on margin? [Enter the answer in as a percent (e.g., 5.55% = 5.55) - not a decimal]

Suppose that you sell short 500 shares of Intel, currently selling for $40 per share. Your initial percentage margin is 60%. Assume you earn no interest on the funds in your margin account and Intel has paid no dividends. a. What will be your rate of return after one year if Intel stock is selling at $40? b. If the maintenance margin is 30%, how high can Intel's price rise before you get a margin call?

1. You just sold a stock for $85. If the stock appreciated at 6% annually, and you owned it for eight years, what was the original price that you paid for the stock? 2. You are considering buying some order fulfillment software that is projected to save your company $27,500 per year for 3 years. If the current rate your company uses to evaluate its investments is 9%, what are you willing to pay for this investment?

A company just paid a $1.60 per share annual dividend. The company is planning on paying $1.80, $1.95, $2.05, and $2.20 a share over the next 4 years, respectively. After that, the dividend will be a constant $2.25 per share per year.  What is this stock worth to you per share if you require a 8.50% rate of return? Options   $24.97   $25.61   $26.25   $26.89   $27.53

In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. If you wanted to lever up the returns of this trade, you could have executed it in your _____ account. A) cash B) margin C) brokerage D) bank

You own 1,000 shares of stock in Avondale Corp. You will receive a $.80 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $45 per share. The required return on Avondale stock is 10 percent. a. What is the current share price of your stock (ignoring taxes)?  b. If you would rather have equal dividends in each of the next two years by creating homemade dividends, what would be the cash flow for Year 1 and Year 2?

How much are you willing to pay for one share of Delphia stock if the company just paid a $1.43 annual dividend last year, the dividends increase by 4 percent annually, and you require a 14 percent rate of return?

Seven months ago, you purchased 400 shares of stock on margin. The initial margin requirement on your account is 70 percent and the maintenance margin is 30 percent. The call money rate on the margin loan is 6.65 percent. The purchase price was $16 a share. Today, you sold these shares for $18.00 each. What is your annualized rate of return? O 64.64 percent O 56.87 percent O 33.35 percent O 42.77 percent O 29.39 percent O O

Finance You short sold 700 shares of a stock at $25 a share. The initial margin requirement is 75 percent and the maintenance margin is 35 percent. The price of the stock has changed to $30 a share today. How much money do you owe your broker today? Provide the answer in dollars, accurate to two decimal places.