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Buying on margin Q.1 find Return on investment and return with no margin from this 2 pics?! Short sales Q.2 find only Return on investment
Buying on margin Q.1 find Return on investment and return with no margin from this 2 pics?!
Short sales Q.2 find only Return on investment from this pics?!
Buying on Margin Action or Formula for Column B Initial Equity Investment $500 000.00 Amount Borrowed $500,000.00 (B4/B10)-B4 Initial Stock Price $100.00 Enter data 2 Shares Purchased 10000 (B4/B101136 Ending Stock Price $100.00 Enter data 3 Cash Dividends During Hold Per. $5.40 0 Initial Equity Percentage 50.00% 1 Maintenance Margin Percentage 30.00% 12 13 Rate on Margin Loan 8.00% 74 Holding Period in Months 6 15 16 Return on Investment Capital Gain on Stook $0.00 B7(B8-B6) 18 Dividends $54,000.00 B7B9 19 Interest on Margin Loan $20,000.00 B5'(B14/12) B13 20 Net Income $34,000.00 B17+B18-19 21 Initial Investment $500,000.00 B4 22 Return on Investment 6.8% B20/B21 23 24 Margin Call: 25 Margin Based on Ending Price 50.00%|(87"B81-B5/B7'88) 26 Price When Margin Call Occurs | $71.43B5/B7-(B11B71) 27 28 Beturn on Stock without M 5.AX (B8-66+B9B6 F H. Ending Return on St Price Investment Return with No Margin $20.00 35.00 50.00 65.00 80.00 95.00 110.00 125.00 155.00 170.00 185.00 200.00 Action or Formula for Column B $500,000.00 $100.00 10,000 (B4/B9)/85 $70.00 Enter data $0.00 50.00% 30.00% 2 Short Sales 3 4 Initial Investment 5 Initial Stock Price 6 Number of Shares Sold Short 7 Ending Stock Price 8 Cash Dividends Per Share 9 Initial Equity Percentage 10 Maintenance Margin Percenta 11 12 Return on Short Sale 13 Capital Gain on Stock 14 Dividends Paid 15 Net Income 16 Initial Investment 17 Return on Investment 18 19 Margin Positions 20 Margin Based on Ending Price 21 22 Price for Margin Call 23 24 25 26 27 $300,000.00 $0.00 $300,000.00 $500,000.00 60.00% B6*(85-87) B8*B6 B13-B14 B4 B15/B16 114.29%B4+(85*86)-B14-(16*67))/(16*87) $115.38 (B4+(B5-B6)-B14)/(16*(1+B10)) BuyingOnMargin ShortSales Ending Return on St Price Investment $170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 2) 20.00 10.00 LEGEND: Buying on Margin Action or Formula for Column B Initial Equity Investment $500 000.00 Amount Borrowed $500,000.00 (B4/B10)-B4 Initial Stock Price $100.00 Enter data 2 Shares Purchased 10000 (B4/B101136 Ending Stock Price $100.00 Enter data 3 Cash Dividends During Hold Per. $5.40 0 Initial Equity Percentage 50.00% 1 Maintenance Margin Percentage 30.00% 12 13 Rate on Margin Loan 8.00% 74 Holding Period in Months 6 15 16 Return on Investment Capital Gain on Stook $0.00 B7(B8-B6) 18 Dividends $54,000.00 B7B9 19 Interest on Margin Loan $20,000.00 B5'(B14/12) B13 20 Net Income $34,000.00 B17+B18-19 21 Initial Investment $500,000.00 B4 22 Return on Investment 6.8% B20/B21 23 24 Margin Call: 25 Margin Based on Ending Price 50.00%|(87"B81-B5/B7'88) 26 Price When Margin Call Occurs | $71.43B5/B7-(B11B71) 27 28 Beturn on Stock without M 5.AX (B8-66+B9B6 F H. Ending Return on St Price Investment Return with No Margin $20.00 35.00 50.00 65.00 80.00 95.00 110.00 125.00 155.00 170.00 185.00 200.00 Action or Formula for Column B $500,000.00 $100.00 10,000 (B4/B9)/85 $70.00 Enter data $0.00 50.00% 30.00% 2 Short Sales 3 4 Initial Investment 5 Initial Stock Price 6 Number of Shares Sold Short 7 Ending Stock Price 8 Cash Dividends Per Share 9 Initial Equity Percentage 10 Maintenance Margin Percenta 11 12 Return on Short Sale 13 Capital Gain on Stock 14 Dividends Paid 15 Net Income 16 Initial Investment 17 Return on Investment 18 19 Margin Positions 20 Margin Based on Ending Price 21 22 Price for Margin Call 23 24 25 26 27 $300,000.00 $0.00 $300,000.00 $500,000.00 60.00% B6*(85-87) B8*B6 B13-B14 B4 B15/B16 114.29%B4+(85*86)-B14-(16*67))/(16*87) $115.38 (B4+(B5-B6)-B14)/(16*(1+B10)) BuyingOnMargin ShortSales Ending Return on St Price Investment $170.00 160.00 150.00 140.00 130.00 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 2) 20.00 10.00 LEGENDStep by Step Solution
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