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

Question

1 Approved Answer

You have just bought on margin 100 shares of IBM Corp. common stock for $108 per share. One year from now you expect to sell

You have just bought on margin 100 shares of IBM Corp. common stock for $108 per share. One year from now you expect to sell the stock for $140. The interest charge on the margin loan will be 9%. What percentage of rate of return do you expect to earn on your investment? ( Ignorecommission.)

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

Case Studies in Finance Managing for Corporate Value Creation

Case Studies in Finance Managing for Corporate Value Creation

Authors: Robert F. Bruner, Kenneth Eades, Michael Schill

7th edition

007786171X, 77861711, 978-0077861711

More Books

Students also viewed these Finance questions

Question

★★★★★
The partners in the Biz Partnership have agreed that partner Estella may sell her $111,000 equity in the partnership to Sean, for which Sean will pay Estella $88,800. Present the partnerships journal...

Answered: 1 week ago

Question

★★★★★
6.40 More eBay bidding For each of the following situations, explain whether the binomial distribution applies for X. a. You are bidding on four items available on eBay. You think that you will win...

Answered: 1 week ago

Question

★★★★★
=+e) Is this process out of control? Hour No. of Defects Sample Size 1 11 200 2 9 200 3 17 200 4 19 200 5 15 200 6 15 200 7 18 200 8 21 200 9 18 200 10 6 200 11 27 200 12 14 200 13 7 200 14 18 200 15...

Answered: 1 week ago

Question

★★★★★
Below are transactions for Hurricane Company during 2015. a. On October 1, 2015, Hurricane lends $10,000 to another company. The other company signs a note indicating principal and 8% interest will...

Answered: 1 week ago

Question

★★★★★
which of the following is not a possible analysis of clustering?

Answered: 1 week ago

Question

★★★★★
1. Sam bought Infinity stock for $125 on January 2 and sold it on December 30 at $168. He received quarterly dividends of $2.00. What was his rate of return?

Answered: 1 week ago

Question

★★★★★
III. Prove by induction the following problems:4. 52n+1 . 2n+2 + 3n+2 . 22n+1 is divisible by 19 for any positive integer n

Answered: 1 week ago

Question

★★★★★
QS 17-17 Profit margin L04 Calculate the profit margin for 2017 and evaluate the result against the industry average in Exhibit 17.11, explaining why it compares favourably or unfavourably (round to...

Answered: 1 week ago

Question

★★★★★
The following are partial balance shoels for Bank of Canada and 14 LVTS Participants BANK OF CANADA 14 LVTS Participants/Primary Dealers Consolidated Balance Sheet Assets(SB) Liabilities (3)...

Answered: 1 week ago

Question

★★★★★
3. A 0.9 ft diameter steel stud is mounted upright to the seabed at a water depth of 32 ft. If the pipe is hit by 4.5 ft high waves, exhibiting a wavelength of 26 ft, calculate the: (i) Max. fluid...

Answered: 1 week ago

Question

★★★★★
P24-4A Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2017, are as shown below. Prepare responsibility report...

Answered: 1 week ago

Question

★★★★★
u a 8a. A magnetic computer disk 5.14 cm in diameter is initially at rest. A small dot is painted on the edge of the disk. The disk accelerates 533.0 rad/s2 for 0.500 s, then coasts at a steady...

Answered: 1 week ago

Question

★★★★★
How can profitability ratios allow insight into the effectiveness of management? Liquidity ratios? Activity ratios? Leverage ratios? Appendix

Answered: 1 week ago

Question

★★★★★
The sales projection for your retail business is $650,000. The industry average for the asset turnover ratio is 5. How much inventory (total assets) should you plan to stock? Appendix

Answered: 1 week ago

Question

★★★★★
T F A journal is a chronological record of all business transactions.

Answered: 1 week ago

Previous Question Next Question