Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months,my investment record is as follows:IPOABCDSharesAllocatedto Me5002001,0000Average underpricingPrice perShare$1020812a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to2 decimal places.)Average initial returnInitialReturn7%12223b. What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating thisaverage initial return, remember to weight by the amount of money invested in each issue. (Do not round intermediate calculations.Enter your answer as a percent rounded to 1 decimal place.)%

The "initial return" means the profit or return that investors might expect to get soon after taking…

Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, ny investment record is as follows: IPO A B C D Shares Allocated to Me 500 200 1,000 Average underpricing Price per Share $10 20 8 12 Average initial return . What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to e decimal places.) Initial Return 7% 12 - 2 23 . What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating this verage initial return, remember to weight by the amount of money invested in each issue. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) %

Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, ny investment record is as follows: IPO A B C D Shares Allocated to Me 500 200 1,000 Average underpricing Price per Share $10 20 8 12 Average initial return . What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to e decimal places.) Initial Return 7% 12 - 2 23 . What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating this verage initial return, remember to weight by the amount of money invested in each issue. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Refer to Figure 2.8 and look at the listing for Hewlett Packard. Required: a. How many shares can you buy for $25,000? Note: Round down your answer to the nearest whole number. b. What would be your annual dividend income from those shares? Note: Round down your intermediate calculations to the nearest whole number. Do not leave the cell blank. Enter zero (0) if required. Round your answer to 2 decimal places. c. What must be Hewlett Packard's earnings per share? Note: Round your answer to 2 decimal places. d. What was the firm's closing price on the day before the listing? Note: Round your answer to 2 decimal places. a. Number of shares b. Annual dividend income c. Earnings per share d. Yesterday's closing price NAME Herbalife Nutrition SYMBOL CLOSE HLF Hershey HSY Hess Corporation HES Hewlett Packard HPE HD HMC HON Home Depot Honda Honneywell CHANGE 0051.45 -0.05 1.64 -3.52 0.25 2.17 0.13 3.69 177.57 80.39 14.01 319.22 32.54 227.22 VOLUME 0000434,355 658,253 2,143,509 9,448,992…
Suppose that you sell short 1,000 shares of Xtel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account.a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $22; (ii) $20; (iii) $18? Assume that Xtel pays no dividends.b. If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call?c. Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $1 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Suppose that you just purchased 250 shares of Beta Banana's stock for $70 per share. The initial margin requirement is 70.0%, which means the amount borrowed is $5,250. The corresponding balance sheet is below: Liabilities and Equity Stock Total assets Margin percentage Assets Required: a. Now suppose the price of the stock falls to $41 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) b. Construct the balance sheet to show the current situation. Stock Total assets $ 17,500.00 $ 17,500.00 c. If the maintenance margin is 50%, at what stock price would you get a margin call? (Round your answer to 2 decimal places.) Price Loan from broker. Equity Total liabilities and equity Assets % $ 5,250.00 $ 12,250.00 $ 17,500.00 Liabilities and Equity Loan from broker Equity Total liabilities and equity
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Please answer fast i give you upvote.
Refer to the following chart. An investor (a day trader) always buys 500 shares of stock at the market close price and sells them at the last sale price, paying a $30 commission per transaction. The stock the trader bought is MSLV. (a) Find the total cost.$ (b) Find the return for the day.$ (c) Find the percent of return. (Round your answer to one decimal place.)
Answer the following questions on margin trading. a) Suppose that Intel is currently selling at $20 per share. You believe that the stock price of Intel will increase. So you buy 1,000 shares using $15,000 of your own money, borrowing the remainder ($5,000) of the purchase price from your broker. (i) What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to: (i) $24; (ii) $16? (ii) If the maintenance margin is 25%, how low can Intelľ's price fall before you get a margin call? (iii) How would your answer to part ii) change if you had financed the initial purchase with only $10,000 of your own money? b) Discuss margin buying of common stocks. Include in your discussion the advantages and disadvantages and investors' motivation of employing the margin buying strategy.
.Suppose that you sell short 1,000 shares of Xtel, currently selling for $20 per share, and give your broker $15,000 to establish your margin account. a.If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $22; (ii) $20; (iii) $18? Assume that Xtel pays no dividends. b.If the maintenance margin is 25%, how high can Xtel’s price rise before you get a margin call? c.Redo parts (a) and (b), but now assume that Xtel also has paid a year-end dividend of $1 per share. The prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid.13.
On 13th November 2019, Marks & Spencer’s CEO buys 100,000 shares of MKS at £185.5. Outline the key steps if you are using the market model to estimate the cumulative abnormal returns CAR (0, 60) event window related to this event.
Assume that an investor buys 100 shares of stock at $37 per share, putting up a 65% margin. a. What is the debit balance in this transaction? b. How much equity funds must the investor provide to make this margin transaction? c. If the stock rises to $59 per share, what is the investor's new margin position? a. The debit balance in this transaction is $ *** (Round to the nearest dollar.)
Suppose that Xtel currently is selling at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to: (i) $22; (ii) $20; (iii) $18? What is the relationship between your percentage return and the percentage change in the price of Xtel?b. If the maintenance margin is 25%, how low can Xtel’s price fall before you get a margin call?c. How would your answer to (b) change if you had financed the initial purchase with only $10,000 of your own money?d. What is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if Xtel is selling after 1 year at: (i) $22; (ii) $20; (iii) $18? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel pays no dividends.e.…

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