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

Question

1 Approved Answer

You purchase 10 shares of ABC in a margin account at $100 with an initial margin of 40%. ABC does not pay a dividend. The

You purchase 10 shares of ABC in a margin account at $100 with an initial margin of 40%. ABC does not pay a dividend. The cost of borrowing from your broker is 5%. What is your percentage return if in 1 year the stock is at $110? Round your answer to 2 decimal places and exclude the percentage sign. Ex. 34.45

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

★★★★★
What source documents are used in accumulating direct labor costs?

Answered: 1 week ago

Question

★★★★★
7. Show that W is smaller in an M/M/1 model having arrivals at rate and service at rate 2 than it is in a two-server M/M/2 model with arrivals at rate and with each server at rate . Can you give an...

Answered: 1 week ago

Question

★★★★★
describe corporate strategy in terms of corporate parenting and business scope

Answered: 1 week ago

Question

★★★★★
Gourmet Helper Appliance Company manufactures home kitchen appliances. The manufacturing process includes stamping, final assembly, testing, and shipping. In the stamping operation, a number of...

Answered: 1 week ago

Question

★★★★★
You purchase 10 shares of ABC in a margin account at $100 with an initial margin of 40%. ABC does not pay a dividend. The cost of borrowing from your broker is 5%. What is your percentage return if...

Answered: 1 week ago

Question

★★★★★
please help sos A bicycle manufacturer currently produces 243,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of \\( \\$...

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements about Binary Search Trees (BST) is correct? A) The time complexity of searching for an element in a balanced Binary Search Tree is O(n). B) In a Binary...

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements about heaps in Data Structures is correct? A) A Min-Heap always has the largest element at the root. B) The time complexity of inserting an element into a...

Answered: 1 week ago

Question

★★★★★
Question: Which of the following statements about Hashing in Data Structures is correct? A) A perfect hash function ensures that every element has the same hash value, resulting in no collisions. B)...

Answered: 1 week ago

Question

★★★★★
What is conservative approach ?

Answered: 1 week ago

Question

★★★★★
What are the basic financial decisions ?

Answered: 1 week ago

Previous Question Next Question