Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13. Joe smith ( like Warren buffet) was lucky enough to buy 400 shares of Coca Cola in 1984 at a price equivalent to $22.

13. Joe smith ( like Warren buffet) was lucky enough to buy 400 shares of Coca Cola in 1984 at a price equivalent to $22. The price today is $60. During this time there were two, 2-for-1 splits. What is the dollar amount of return?

a. cannot determine from the data given

b. $35, 200

c. $87,200

d. $71,200

e. $11,200

14. INTC has a current price of 18, an expected dividend per share of $.50, and expected dividend growth of 5 % per year. According to the Discounted Dividend Value Model. INTC is undervalued if investors have a risk adjusted return of:

a. 9.78%

b. 8.22%

c. 7.78%

d. 6.21%

15. margin is :

a. the minimum down payment ( equity deposit) required

b. the maximum down payment (equity deposit) required

C. the stuff you put on toast in the morning.

d. the maximum amount that can be borrowed.

e. the minimum amount that can be borrowed

16. when the margin requirements are 60%, and the stock sells for $20, an investor with $1200:

a. can purchase a total of 100 shares using margin.

b. cannot purchase more than 120 shares with margin

c. can purchase a total of 50 shares without margin

d. impossible to calculate given the information above.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Ronald R. Pitfield

1st Edition

0852581513, 978-0852581513

More Books

Students also viewed these Finance questions

Question

u ( x ) = - 2 x - 4 w ( x ) = 2 x

Answered: 1 week ago