Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You sold short 285 shares of common stock at $47.12 per share. The initial margin is 55%. Your initial investment was __________.
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- You purchased 395 shares of ABC common stock on margin at $25 per share. Assume the initial margin is 55% and the maintenance margin is 35%. Below the stock price of __________ you would get a margin call. Assume the stock pays no dividend and ignore interest on margin. Group of answer choices 17.31 18.40 14.67 16.80 16.41arrow_forwardYou short sell 1,000 shares of RAJ stock at a price of $70. Your initial margin is 50%. If you cover your RAJ short position at a price of $65, how much is your return? A. 14.29% B. 12.31% C. 17.39% D. 15.65%arrow_forwardGiven $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below. (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Golden Seas Jacobs and Jacobs MAG PDJB Price/Share ($) 閘12 21 46 12 Number of Shares Outstanding (millions) 1.14 1.46 26.23 7.91arrow_forward
- One year ago, KJ Industries stock sold for $52 a share. Over the past year, the stock has returned 16.0 percent with half of that return coming from dividend income. What is the current price of this stock? Multiple Choice O о O $56.16 $47.84 $60.32 $43.68arrow_forwardYou purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one: $12,000 $14,400 $14,800 $15,600 $12,800 Give typing answer with explanation and conclusionarrow_forwardAssume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. The maintenance margin is 35%. How far does the price of the stock rise for you to get a margin call? a) $33.33 b) $34.62 c) $32.14 d) $38.74 e) $40.50arrow_forward
- You purchased Butterfly Wing Corp. stock exactly one year ago at a price of $77.95 per share. Over the past year, the stock paid dividends of $2.98 per share. Today, you sold your stock and earned a total return of 15.95 percent. What was the price at which you sold the stock? Multiple Choice $96.41 $94.90 $90.38 $92.64 $87.40arrow_forwardYou purchased 1,150 shares of stock in Natural Chicken Wings, Incorporated, at a price of $43.46 per share. Since you purchased the stock, you have received dividends of $1.01 per share. Today, you sold your stock at a price of $46.71 per share. What was your total percentage return on this investment? Multiple Choice 7.48% 8.64% 9.80% 10.46% 11.15%arrow_forwardYou purchased 357 shares of PQR, Inc., stock on 64% margin when the stock was selling fo $33.9 a share. The stock is currently selling for $36.18 a share. What is your current equity position (in $)? Answer to two decimals.arrow_forward
- Apisco Tiger Inc. stock is currently selling for $72.00 a share. The stock has a dividend yield of 3.50 percent. How much dividend income will you receive per year if you purchase 500 shares of this stock? Group of answer choices $1,450 $1,170 $921 $1,260 $850arrow_forwardYou own 350 shares of Maslyn Tours stock that sells for $52.48 per share. If the stock has a dividend yield of 2.4 percent, how much do you expect to receive next year in dividend income from this investment? Multiple Choice $468.38 $489.81 $429.35 $455.53 $440.83arrow_forwardHaving heard about IPO underpricing, I put in an order to my broker for 1, 120 shares of every IPO he can get for me. After 3 months, my investment record is as follows: IPO Shares Allocated to Me Price per Share Initial Return A 620 $ 10 6 % В 320 20 14 C 1, 1208-3D0 12 23 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating this average initial return, remember to weight by the amount of money invested in each issue.arrow_forward
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