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

Question

1 Approved Answer

Stock ABCs bid price today is $20 and its ask price is $25. Suppose that you use $1,000 to buy ABCs shares today. After one

Stock ABCs bid price today is $20 and its ask price is $25. Suppose that you use $1,000 to buy ABCs shares today. After one year, both the bid price and the ask price are 4$ higher, where X = 4. At that point, you sell your shares at the market. Assume that your brokerage doesnt charge any fees. What is the one-year percentage return on your investment?

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

International Financial Reporting Standards This Work Professes To Assist Finance Professionals And Students To Deep Dive Into International With Illustration And Solved Problems

International Financial Reporting Standards This Work Professes To Assist Finance Professionals And Students To Deep Dive Into International With Illustration And Solved Problems

Authors: B D Chatterjee

1st Edition

150108612X, 9781501086120

More Books

Students also viewed these Finance questions

Question

★★★★★
What key employees did Gold recruit to be members of his new-venture team?

Answered: 1 week ago

Question

★★★★★
atient services department revenues or n ervices department: of bills generated?R ted? Explain your rationale. e costs of a hospital's financial ev enues or number blems eening services department of...

Answered: 1 week ago

Question

★★★★★
Explore the nature of career entrenchment and career adaptability as polar opposites and their potential to coach employees in organization engagement.

Answered: 1 week ago

Question

★★★★★
Sams Company reported the following stockholders equity account balances on December 31, 2011. Preferred stock (12%, $100 par value, call price is $105)... $100,000 Common stock, $10 par...

Answered: 1 week ago

Question

★★★★★
Stock ABCs bid price today is $20 and its ask price is $25. Suppose that you use $1,000 to buy ABCs shares today. After one year, both the bid price and the ask price are 4$ higher, where X = 4. At...

Answered: 1 week ago

Question

★★★★★
Question 3 A . Bonika Sdn Bhd ( BSB ) manufactures small camping tents. BSB produced 3 , 0 0 0 units during the year. These camping tents sell for RM 1 5 0 each. BSB had 5 0 0 units in finished goods...

Answered: 1 week ago

Question

★★★★★
Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has...

Answered: 1 week ago

Question

★★★★★
5) An object measures 2cm high above the axis of an optical system consisting of a 2-cm diameter iris, followed by a thin convex lens of 5 cm focal length and 5 cm diameter. The object is 10 cm in...

Answered: 1 week ago

Question

★★★★★
1. A complete repaint of a form or control can be enforced by method. (a) upload (b) refresh (c) set focus (d) mouse move 2. In visual basic, a variable name cannot be more than ...

Answered: 1 week ago

Question

★★★★★
Discuss the techniques of sales forecasting.

Answered: 1 week ago

Question

★★★★★
Write short notes on Marketing mix.

Answered: 1 week ago

Previous Question Next Question