You bought 500 shares of Facebook one year ago. The price was $300 per share. You financed 50% of the total purchase price by borrowing from your broker at 8% annual interest rate. If the current Facebook stock price is $240 what is your rate of return if they don’t pay any dividends?

Q: . How much lower will your total return be because of your trades?

A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…

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: Mr. Gilbert believing that the price of Caterpillar which is $ 255 today will go down significantly…

A: Short selling is a trading strategy in which the investor borrws the security to sell it in the open…

Q: You invest $1,500 into a "hot stock" through the Robin Hood app. The stock does well in the first…

A: We can find the money-weighted return by taking the investment made in the stock $1500 and $1000 and…

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: rate

A: Formula to calculate rate of return on shares is: Ending value of investment - Beginning value of…

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: You are bullish on Telecom stock. The current market price is $62 per share, and you have $6,200 of…

A: The maintenance margin is the margin that denotes the smaller equity value that must be kept by 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: Suppose that TSLA’s current share price is $20. You buy 1,000 shares using $15,000 of your own…

A: Rate of return is percentage amount of earning after holding the shares for one year including cost…

Q: You have $38,000 you would like to invest in two different stocks, Stock Boll and Stock Coff. The…

A: Investment earnings for an investor. Income flows to investors in the form of interest, dividends,…

Q: You are bullish on Zhu Que, Incorporated. You invest $10,000 of your own money and borrow $10,000…

A: The investor takes a leveraged buy position in a stock. We have to find the (a) number of shares the…

Q: You are considering investing $800 in Higgs B. Technology Inc. You can buy common stock at $25.00…

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

Q: Max just paid an annual dividend of $3.75. The company has y of increasing the dividend by 2.5…

A: DDM is dividend discount model and value of stock can be calculated based on present value of…

Q: You purchased 100 shares of Chipotle Mexican Grill, Inc. (CMG) common stock on a margin of $431.79…

A: To calculate the return on equity (ROE) for your investment in Chipotle Mexican Grill, Inc. (CMG)…

Q: Elizabeth Greene wants to buy 300 shares of Google, which is selling in the market for $533.14 a…

A: In stock market market margins are required in margin account to keep position otherwise broker…

Q: You are offered a chance to purchase shares in a new company which sells franchises for MamaC Pizza.…

A: Intrinsic value of share = Annual dividend/required return

Q: Davin Wenig, an investor with a 13% required rate of return, wants to buy shares of eBay (ticker…

A: The dividend discount model is a technique that helps to compute the current value of the stock…

Q: Based on the $10,000 drop in market value outlined in (5) to $30,000, what is the % gain/loss on…

A: We have a leveraged position in stock. We need to assess the impact of a decline in the market value…

Q: Jeyna is considering buying a stock. The company paid $10 in dividends in the last 12 months, with a…

A: The Dividend Discount Model (DDM) is a method of valuing the intrinsic value of a stock by using its…

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 bought a stock one year ago for $60 per share and sold it today for $65 per share. It paid a $2…

A: Realized return refers to the return that is being earned by the stockholders over the investment…

Q: Suppose you purchased a stock a year ago. Today, you receive a dividend of $12 and you sell the…

A: given,   Dividend = $ 12 Sale value = $ 111 Return = 8%   Let Purchase value be 'x' Capital gain…

Q: You bought a share of Pacebook stock for $20 at the beginning of the year. Pacebook stock paid…

A: Holding period return is that return which is earned by the investor during the holding period of…

Q: Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy…

A: The interest rate at which banks and other financial organizations lend and borrow money from one…

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: 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: Claire Gerber wants to buy 100 shares of Google, which is selling in the market for $548.66 a share.…

A: Margin is amount we deposit with the broker for buying securities

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: You are bullish on Telecom stock. The current market price is $110 per share, and you have $22,000…

A: Current Market Price = $110Owned Funds = $22,000Borrowed Funds = $22.000Total Initial Investment =…

Q: Jenny Banks is interested in buying the stock of Fervan Inc., which is increasing its dividends at a…

A: Last Year dividend = $2.65 Required Return on Stock (Re) = 16% Growth Rate(g) = 6% Expected Dividend…

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 Interest rate on loan…