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

Question

1 Approved Answer

You purchased 100 shares of a company for $76.03, and borrowed $5,000 of the original purchase from your broker on margin. Since then, the stock

You purchased 100 shares of a company for $76.03, and borrowed $5,000 of the original purchase from your broker on margin. Since then, the stock price has increased by 14.6%. If your broker charges a 4.5% interest rate on margin accounts, what is your overall return?

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

Principles Of Managerial Finance

Principles Of Managerial Finance

Authors: Chad J. Zutter, Scott Smart

16th Edition

0136945880, 978-0136945888

More Books

Students also viewed these Finance questions

Question

★★★★★
A* and define in Exercise 15, and show that (and hence A*) is a -field.

Answered: 1 week ago

Question

★★★★★
3. Discuss the following propositions in a group: (1) "Sometimes leaders have to be inauthentic in order to fill their roles." (2) "Ethical leadership is beautiful leadership." (3) "Leaders should be...

Answered: 1 week ago

Question

★★★★★
=+b) Would you use this model? Explain.

Answered: 1 week ago

Question

★★★★★
Apache, a U.S. corporation, owns 80% of the stock in Burrito, incorporated in Country Y. Burrito reports the following results for the current year: ______________________________________ Gross...

Answered: 1 week ago

Question

★★★★★
Sara is using RSA crypto-system with the following setup: p=11andq=3 Sara publish his Public Key: (n,e)=(33,3). a. Find n,(n). b. Calculate Sara's private key. c. Nora wants to send the message M=13...

Answered: 1 week ago

Question

★★★★★
Required information Problem 13-4A (Algo) Analyzing changes in stockholders' equity accounts LO C3, P2, P3 [The following information applies to the questions displayed below.] The equity sections...

Answered: 1 week ago

Question

★★★★★
Given a rectangular hollow box with outer dimensions 125mm x 85mm and constant thickness of 10mm has an ultimate stress of 415 MPa. Modulus of Elasticity of 110 GPa. a. Determine the bending moment M...

Answered: 1 week ago

Question

★★★★★
"Political, economic, and legal environments of country clearly influence the attractiveness of that country as a market or investment site". Do you agree with this statement? Discuss. And explain...

Answered: 1 week ago

Question

★★★★★
Angie sees a sign on the counter of her local gym which says " No-one is allowed to use the equipment if they have not paid current gym fees ". This is an example of:

Answered: 1 week ago

Question

★★★★★
1. Assume the demand function for good Y is as follows: D = 850 + 21+ 15Px 1315 where QD 2 Quantity demanded of good Y, I = Average income, PK 2 Price of good X and PY 2 Price of good Y. (a)...

Answered: 1 week ago

Question

★★★★★
During the 2023 income year, Nilpa (a resident taxpayer) received the following: Net salary from employer (PAYG of $30,000 was withheld) $90,000 Allowance from employer $10,000 Cash prize from...

Answered: 1 week ago

Question

★★★★★
=+1. What is the job of a corporations board of directors? Whose interests should they serve?

Answered: 1 week ago

Question

★★★★★
=+2. Many CEOs complain that the result of the Sarbanes-Oxley legislation has been to complicate further the auditing process and push up fees that the auditing companies charge corporations. Do you...

Answered: 1 week ago

Question

★★★★★
=+4. Develop an argument against the Code for Corporate Responsibility is it persuasive?

Answered: 1 week ago

Previous Question Next Question