An investor puts up $ 5,000 but borrows an equal amount of money from their broker to double the amount invested in ABC stock . The broker charges 7 % on the loan . The stock was originally purchased at $ 25 per share and in one year the investor sells the stock for $ 28 . The trading cost is $ 0.2 per share . ABC stock pays dividends of $ 0.4 per share . The investor's rate of return was

Q: You purchase 380 shares of stock at $37.60 per share. Several months later you sell the shares at…

A: Gain or loss will be the difference between to total purchase price and net proceeds Gain or loss…

Q: You’ve just opened a margin account with $13,475 at your local brokerage firm. You instruct your…

A: Step 1: Calculate the Total Purchase Price of the StockTotal Purchase Price =Number of Shares×Price…

Q: Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $58 per share.…

A: Number of shares purchased 100 Price per share $58 New share price $48 Amount borrowed from…

Q: Given that Local Care, Inc.'s stock is currently selling for $65 a share, calculate the amount of…

A: Variables in the given question:Current price of stock= $65 per shareNo. of shares involved in…

Q: 26. An investor puts up $5,000 but borrows an equal amount of money from their broker to double the…

A: Given Information: Amount invested - $5,000 Amount borrowed - $5,000 Broker charges - 7% Purchase…

Q: You are considering investing $900 in Higgs B. Technology Inc. You can buy common stock at $21.95…

A: A convertible bond comes with an option for the investor which allows him to convert the bonds into…

Q: . VWhat is your rate of return on this investment? *

A: "Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: An investor buys 200 shares of stock selling at ​$71 per share using a margin of ​70%. The stock…

A: STEP 1 A rate of return for a time period that is shorter than a year but is calculated as if it…

Q: An investor short sells 250 shares of a stock for $43 per share. The initial margin is 60%. Ignoring…

A: Initial margin The amount kept aside to protect from the risk of the counterparty is known as the…

Q: Suppose that you opened a margin account (margin requirement = 60%) with your brokerage firm.…

A: STEP 1 The gain or loss of an investment over a given time period, represented as a percentage of…

Q: You purchased 74 shares of Z stock in January 2008 for $40 per share. Each year you recelved a cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Use the commission schedule from Company A shown in the table to find the annual rate of interest…

A: The rate of return on the stock refers to the annual profits provided by the stock to the investors.…

Q: An investor puts up $5,000 but borrows an equal amount of money from his broker to double the amount…

A: Solution:Investor’s rate of return means the percentage of net earnings to own invested funds.

Q: You bought 100 shares of Zen stocks initially selling at Php 50 with an initial margin on your…

A: Given: Particulars   Number of shares 100 Selling price 50 Initial margin 25% Interest…

Q: An investor buys 200 shares of stock selling at $52 per share using a margin of 64%. The stock pays…

A: Number of shares = 200 sharesSelling price per share = $52Annual dividend = $1Annual interest cost =…

Q: Assume that an investor short-sells 600 shares of stock at a price of $45 a share, making a 50…

A: a.The amount of money deposited is

Q: margin at $35 per share. $2000 is borrowed from the broker to complete the purchase. Determine the…

A: Margin account is to be opened with brokers to start trading in the market and to have open…

Q: purchased 90 shares of a stock at the start of the month, with part of the purchase financed by your…

A: In stock market trading is done through brokers and broker require margin in account and remain…

Q: An investor buys 100 shared of stocks on margin price at a price of $70 per share. The initial mar…

A:

Q: You purchase 60 shares for $60 a share ($3,600), and after a year the price falls to $55. Calculate…

A: The return on investment is a measurement used to quantify how much income or amount of money an…

Q: Please do stepwise and correct please ill like.   Dée Trader opens a brokerage account and…

A: Number of shares purchased = 200Price per share = $46Amount borrowed from brokers = $2,400Interest…

Q: You purchase 240 shares of stock at $37.60 per share. Several months later you sell the shares at…

A: given information  purchased price = 37.60 selling price = 33.10 total number of shares = 240 shares…

Q: Assume that an investor short-sells 600 shares of stock at a price of $45 a share, making a 50…

A: The objective of this question is to calculate the initial investment, the profit or loss from the…

Q: Gotham Ltd has issued perpetual preference shares with a $1,000 par value. The bank pays a quarterly…

A: The current price of preferred share is the price of the share that is listed on the stock market.

Q: You have $50,000 to invest. You want to either invest it all in one stock, or in options. The stock…

A: Stocks represent ownership in a company and are bought and sold in the stock market. They can…

Q: Katty bought a stock at $40 per share using 60% initial margin. The broker charges 8% on the loan…

A: The margin account refers to the brokerage account where the investor needs to invest only a part of…

Q: Michael’s, Inc. just paid $1.80 to their shareholders as the annual dividend. Simultaneously, the…

A: Just paid dividend (D0) is $1.80. The growth rate (g) is 5%. The rate of return (r) is 4%

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…

Q: What was your total loss on this investment

A: Margin: It refers to the amount borrowed from the broker for purchasing a security/investment. It…

Q: In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months…

A: The total return on this trade in dollar amount will be the sum of dividend paid and the price…

Q: Your broker mailed you your year-end statement. You have P250,000 invested in Happy Chemical,…

A: In the given case, we have provided the investment amount of each stock. Summing up each investment…

Q: brower bloom has preference shares outstanding that pay a dividend of R7,50 per share at the end of…

A: Preference shares are a special type of shares which pay annual dividend irrespective of the…

Q: An investor buys $ 20,000 worth of a stock priced at $ 25 per share using 80 % initial margin . The…

A: Given Information: Stocks purchased - $20,000 Stock price - $25 Initial margin - 80% Broker charges…

Q: An investor puts up $16,000 but borrows an equal amount of money from his broker to double the…

A: RATE OF RETURNRate of Return is the Ratio between Net Income & Investment.Return on Investment…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Given information: Investment : $10,000 Stock price: $40 Initial margin: 70% Broker fees : 10%…

Q: Your broker recommends that you purchase Good Mills at $34. The stock pays a $2.20 annual dividend,…

A: Intrinsic value of the stock = Dividend per share(1+growth rate) / required rate of return - growth…

Q: Kai has $25,000 in his margin account. His broker pays 1% (continuously compounded) interest on cash…

A: In a margin account, the broker lends the investor money while using the account as collateral to…

Q: At an annual continuously compounded interest rate of 5%, a non-dividend-paying stock is currently…

A: The question is based on the concept of Financial Management.