Assume you just purchased 250 shares of Home Depot at $40 per share and 50 percent of
Question:
Total cost ………………………..$______
Amount borrowed ……………….-______
Contribution …………………….. ______
What would happen to your investment if the price of Home Depot stock rose to $50 per share (ignoring any possible dividends)?
Total value ………………………$______
Loan …………………………….-______
Margin …………………………..======
What was your profit?
What would happen to your investment if the price of Home Depot stock fell to $30 per share (ignoring any possible dividends)?
Total value ………………………$______
Loan …………………………….-______
Margin …………………………..======
What was your loss?
Step by Step Answer:
Total Purchase Cost 10000 250 shares 4000 per share Amount Margined 5000 50 ...View the full answer
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Corporate Finance questions
-
You purchased 250 shares of a particular stock at the beginning of the year at a price of $87.25. The stock paid a dividend of $1.15 per share, and the stock price at the end of the year was $94.86....
-
You purchased 250 shares of a particular stock at the beginning of the year at a price of $68.12. The stock paid a dividend of $.85 per share, and the stock price at the end of the year was $76.45....
-
You purchased 250 shares of a particular stock at the beginning of the year at a price of $75.13. The stock paid a dividend of $0.85 per share, and the stock price at the end of the year was $81.64....
-
The compound bow in the previous problem requires 152 J of work to draw the string back to x = 0.540 m, at which point the archer need only exert 250 N of force to hold the string in place. (a)...
-
Your brother-in-law offers you the opportunity to invest $15,000 in a project that he promises will return $17,000 at the end of the year. Because you have only $3,000 in cash, you will have to...
-
Consider the closed-loop system in Figure P5.21. Determine values of the parameters k and a so that the following specifications are satisfied: (a) The steady-state error to a unit step input is...
-
How does the company get back the dollars it invests in net operating working capital? AppendixLO1
-
Fancher Company is a cosmetics manufacturer. Its assembly department receives raw cosmetics from the molding department. The assembly department places the raw cosmetics into decorative containers...
-
6. In recent years Howard Company has purchased two machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation...
-
The Mach 10 is a one-person sailboat manufactured by Creative Leisure. The final assembly plant is in Cupertino, California. The assembly area is available for production of the Mach 10 for 200...
-
Harry and Harriett own 1,000 shares of AI Inc. in a brokerage account that is titled "Harry and Harriett, Tenancy-in-Common." Explain how the assets would be handled if Harry passed away. Would this...
-
1. What should be John and Emily's first priority before investing or making any investment plans? 2. If John and Emily asked you to prioritize their goals, how would you rank their investment...
-
Uber Technologies Inc. is a tech startup that provides ride-sharing services by connecting independent contractors (drivers) and riders with the use of an app. Uber has expanded its operations to 674...
-
What's your favourite way to promote and build interpersonalwellness? How do you nurture your relationships? How do you build friendships? How do you show your loved ones that you care? Share your...
-
What is the best way to summary this formation? IMC Communication Objectives Increase from 0% to 75% of Millennials in the Dallas-Fort Worth area, ages 22 - 34, with a four-year college degree,...
-
Branding is very important to marketing, that is while most businesses focus on brands that attract customer's interest. Store brand is unique to a particular store compared to national brand . A...
-
Do you think that your score accurately reflects your global mindset? Why or why not? What, if anything, is missing from the assessment? How do you think that having a higher global mindset will help...
-
Healthcare is an ever-changing industry that requires healthcare organizations to align with those changes or risk being left behind. With the advances being made in technology, every corner seems to...
-
What impact will the following have on the operating cycle? Please explain each separately. a. Receivables period goes up b. Inventory turnover goes up c. Payables turnover goes up d. A new manager...
-
Discuss the information available from the following techniques in the analysis of inorganic pigments used in antique oil paintings: (i) Powder X-ray diffraction, (ii) Infrared and Raman...
-
Aging Method Bad Debt Expense} Carol Simone, the manager of Handy Plumbing, has provided you with the following aging schedule for Handy's accounts receivable: Carol indicates that the \(\$ 125,200\)...
-
You are considering a project with an initial cash outlay of $ 80,000 and expected free cash flows of $ 20,000 at the end of each year for 6 years. The required rate of return for this project is 10...
-
You are considering three independent projects, project A, project B, and project C. Given the following cash- flow information, calculate the payback period for each. If you require a 3- year...
-
You are considering three independent projects, project A, project B, and project C. Given the following cash- flow information, calculate the payback period for each. If you require a 3- year...
-
1. (A nice inharitage) Suppose $1 were invested in 1776 at 3.3% interest compounded yearly a) Approximatelly how much would that investment be worth today: $1,000, $10,000, $100,000, or $1,000,000?...
-
Why Should not the government subsidize home buyers who make less than $120K per year. please explain this statement
-
Entries for equity investments: 20%50% ownership On January 6, 20Y8, Bulldog Co. purchased 25% of the outstanding common stock of $159,000. Gator Co. paid total dividends of $20,700 to all...
Study smarter with the SolutionInn App