Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and the stock pays no dividend but

You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and the stock pays no dividend but has a trading cost of $0.1 per share. Your rate of return would be __________ if you sell the stock at $36 per share. Ignore interest on margin.

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

Law Forms For Personal Use

Law Forms For Personal Use

Authors: The Editors Of Nolo Nolo The Editors

12th Edition

1413330932, 978-1413330939

More Books

Students also viewed these Finance questions

Question

★★★★★

On January 1, 2006, Pabst Company acquired 80% of Secor Companys common stock and 30% of Secor Companys 10% preferred stock. Pabst Company paid $680,000 for the common stock and $135,000 for the...

Answered: 1 week ago

Question

★★★★★

1. [-/2 Points] DETAILS MY NOTES AUFCAT7 2.3.027. Graph the equation by first writing the equation in slope-intercept form. 3x + y = 1 Graph the equation. bates O Fill -10 -9 -8 -7 -6 -5 4 -3 -2 -1 2...

Answered: 1 week ago

Question

★★★★★

2. Periodically, a computer chip maker like Intel introduces a new chip that is faster than the previous one. In response, demand for computers using the earlier chip decreases as customers put off...

Answered: 1 week ago

Question

★★★★★

Chiapas Corporation purchased 2,000 shares of its $10 par value common stock for $120,000 on August 1. It will hold these shares in the treasury until resold. On December 1, the corporation sold...

Answered: 1 week ago

Question

★★★★★

You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and the stock pays no dividend but has a trading cost of $0.1 per share. Your rate of return would be...

Answered: 1 week ago

Question

★★★★★

Suppose that at the end of each month you deposit $949.48 into a retirement account that earns 5.2% APR. If your account started out at zero and you make deposits for 32 years, what will your account...

Answered: 1 week ago

Question

★★★★★

Project Risk AnalysisComprehensive Bridgeway Pharmaceuticals manufactures and sells generic over-the-counter medications in plants located throughout the Western Hemisphere. One of its plants is...

Answered: 1 week ago

Question

★★★★★

Question 1 A data professional at a retail store automates a process to identify their company s best - selling products. First, a list of all products is compiled. Then, the number of times they...

Answered: 1 week ago

Question

★★★★★

How much do you need to invest today at an 9% rate of return to be able to withdraw $7,000 in one year and $10,000 in two years? Answer in dollars with two decimals

Answered: 1 week ago

Question

★★★★★

Which of the following courses relates to decision-making, situational awareness, crew coordination, communication, human error, fatigue, fitness, attitudes, training devices, controls, workload...

Answered: 1 week ago

Question

★★★★★

Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The...

Answered: 1 week ago

Previous Question Next Question