FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A year ago, Kim Altman purchased 280 shares of BLK, Inc. for $29.50 on margin. At that time the margin requirement was 40 percent. If

A year ago, Kim Altman purchased 280 shares of BLK, Inc. for $29.50 on margin. At that time the margin requirement was 40 percent. If the interest rate on borrowed funds was 11 percent and she sold the stock for $36.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places

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

Step: 3

blur-text-image

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

Contemporary Financial Management

Contemporary Financial Management

Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow

9th Edition

032416470X, 9780324164701

More Books

Students also viewed these Finance questions

Question

★★★★★
The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2017: Required 1. Prepare in good form a classified balance sheet...

Answered: 1 week ago

Question

★★★★★
What are some reasons why leading is such a critical skill for supervisors and managers today?

Answered: 1 week ago

Question

★★★★★
2. Be alert for words and phrases that signal relationships, such as on the other hand, because, first, second, however, since.

Answered: 1 week ago

Question

★★★★★
The following is accounting information taken from Woodrail Company's adjusted trial balance for 2016: In addition, the following changes occurred in selected accounts during 2016: Required: Using...

Answered: 1 week ago

Question

★★★★★
Consider historical data showing that the average annual rate of return on the S\&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S\&P...

Answered: 1 week ago

Question

★★★★★
The blackbody radiation emitted from a furnace peaks at a wavelength of7.410 -6 m(0.0000074m).What is the temperature inside the furnace?

Answered: 1 week ago

Question

★★★★★
Your company estimates that 5% of this month's $100,000 Sales on account will eventually be written off. The entry should be: Debit Bad Debt Expense, $5,000; Credit Bad Debt Allowance, $5,000 Debit...

Answered: 1 week ago

Question

★★★★★
Suppose we want to figure out what the biggest magnitude earthquake was in 2019, but we only have our representative sample of 200. Let's see if trying to find the biggest magnitude in the population...

Answered: 1 week ago

Question

★★★★★
In the figure below, a stainless steel wire is supporting a weight, W. The Yield Strength and Young's Modulus for stainless steel (Grade 304) is 205 MPa and 190 GPa, respectively. What is the maximum...

Answered: 1 week ago

Question

★★★★★
Keelan visited a local accounting office and gave a demonstration to the accountants of a software product he was selling that streamlined the tax filing process. The accountants were excited at the...

Answered: 1 week ago

Question

★★★★★
P15-6- EOQ, reorder point, and safety stock Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $28 per order, while the carrying cost is $5 perunit per year. The...

Answered: 1 week ago

Question

★★★★★
What reward policy would you suggest to the university?

Answered: 1 week ago

Question

★★★★★
Based on the data collected by the HR Department, what reward problems exist at Cordaval University?

Answered: 1 week ago

Question

★★★★★
Does the proposal to pay higher salaries to one particular group of teaching staff impact positively or negatively on the strategic plan? Explain your answer.

Answered: 1 week ago

Previous Question Next Question