Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 21, 2024

Problem 4-05 A year ago, Kim Altman purchased 210 shares of BLK, Inc. for $39.50 on margin. At that time the margin requirement was

Problem 4-05 A year ago, Kim Altman purchased 210 shares of BLK, Inc. for $39.50 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 10 percent and she sold the stock for $47.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places. 26.42 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 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

Derivatives Markets

Authors: Rober L. Macdonald

4th edition

321543084, 978-0321543080

More Books

Students also viewed these Finance questions

Question

★★★★★

Two companies, Energen and Hastings Corporation, began operations with identical balance sheets. A year later, both required additional manufacturing capacity at a cost of $50,000. Energen obtained a...

Answered: 1 week ago

Question

★★★★★

Suppose that a manufacturer of men's shirts can produce a dress shirt in its Houston, Texas plant for $8 per shirt (including the cost of raw materials). Chicago is a major market for 100,000 shirts...

Answered: 1 week ago

Question

★★★★★

Over the course of 24 hours, track how many selling messages you are exposed to. At the end of the day, which ones do you remember? Why?

Answered: 1 week ago

Question

★★★★★

Use the ANOV table given in Table 8.6 to answer the following questions. (a) Determine the estimate of ????. (b) Does the ????-ratio provide sufficient evidence for rejecting ????0 ????1 = 0?...

Answered: 1 week ago

Question

★★★★★

1. Upon investigation, you learn that the town does not have a strategic plan or a mission statement. In your view, does this affect the current situation? Why or why not? 2. Describe the specific...

Answered: 1 week ago

Question

★★★★★

____________________ Use n to write an expression which computes the excess amount for the n-bit excess notation used by the IEEE Standard 754. Hint When n = 8 (single precision), the excess amount...

Answered: 1 week ago

Question

★★★★★

Whispering issued an 9%, 10-year $1,800,000 bond to build a monorail mass transit system. The city received $1,587,988 cash from the bond issuance on January 1, 2025. The bond yield is 11%. Interest...

Answered: 1 week ago

Question

★★★★★

P3.1 (LO 1,2,3) (Multiple-Step Statement, Retained Earnings Statement) The following infor- mation is related to Dickinson Company for 2025. Retained earnings balance, January 1, 2025 Sales revenue...

Answered: 1 week ago

Question

★★★★★

First Month of Operations The following transactions took place during the first month of operations of Mother Mollys Childcare. On May 1, Molly invests $50,000 to open Mother Mollys Childcare. On...

Answered: 1 week ago

Question

★★★★★

10. DJIA (LO4, CFA2) On May 31, 2022, the DJIA opened at 33,160.59. The divisor at that time was .15173. Suppose on this day the prices for 29 of the stocks remained unchanged and I stock increased...

Answered: 1 week ago

Question

★★★★★

Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling Burdenos inventory and maintaining inventory for future sale. Financing Division takes loan applications,...

Answered: 1 week ago

Question

★★★★★

Jason went to the post office and bought both 41-cent stamps and 26-cent postcards and spent $10.28. The number of stamps was 4 more than twice the number of postcards. How many of each did he buy?

Answered: 1 week ago

Question

★★★★★

Albany Division is considering the acquisition of a new asset that will cost $540,000 and have a cash flow of $184,000 per year for each of the four years of its life. Depreciation is computed on a...

Answered: 1 week ago

Question

★★★★★

13-)The 2011 values for a pension fund are provided in the table below, in millions of dollars. Pension Assets Beginning value on 1 January Change in value in 2011 $90.11 10.30% Pension Liabilities...

Answered: 1 week ago

Question

★★★★★

Graph one period of each function. y = 4 cos x

Answered: 1 week ago

Question

★★★★★

P4.1 How much would an investor earn on a stock purchased one year ago for $63 if it paid an annual cash dividend of $3.75 and had just been sold for $67.50? Would the investor have expe- rienced a...

Answered: 1 week ago

Question

★★★★★

P4.3 Assuming you purchased a share of stock for $50 one year ago, sold it today for $60, and during the year received three dividend payments totaling $2.70, calculate the following. a. Income b....

Answered: 1 week ago

Question

★★★★★

P4.2 An investor buys a bond for $10,000. The bond pays $300 interest every six months. After 18 months, the investor sells the bond for $9,500. Describe the types of income and/or loss the investor...

Answered: 1 week ago

Previous Question Next Question