You decide to sell 100 shares of Topgun Enterprises Inc. short when it is selling a yearly high of $42.25. Your broker tells you that your margin requirement is 60 p and that the commission on the sale is $20. While you are short, Topgun pays a Se share dividend. At the end of one year you buy your Topgun shares (cover your s sale) at $44 and are charged a commission of $20 and a 5 percent interest rate. a. What is your dollar return on the investment? b. What is your rate of return on the investment?

Q: $30 per share, holds the shares for 5 years, and sells them for $65. (Hint: Find the holding period…

A:

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 purchase 70 shares of Pepsi on margin at $50 per share. Assume the initial margin is 50%. The…

A: Value of shares = 70*$50 = $3,500Invested amount = $3,500*50%=$1,750and amount borrowed =…

Q: Sooner-than-Later (STL) Inc. announces that it will pay a $75 per dividend next year, followed by a…

A: workingTotal dividend in the first year:Total dividend in Year 1=Dividend per share×Number of…

Q: Body Armor Ltd. states that it will pay a $60 per dividend next year, followed by a final dividend…

A: To help Mrs. Emily Rodd achieve her goal of limiting her income from investments to no more than $20…

Q: You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over…

A: 1. Initial Investment: 1000 shares at $3 per share = $3,0002. Annual Dividends: 7 cents per share…

Q: Cindy buys a stock on January 1 for $25.  It pays a total dividend of $1 during the first year, and…

A: Holding period return (HPR) is the total return received from holding an investment over a specific…

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: On July 1, 2020, just after a dividend payment, you purchased 20,000 shares of Endicott Johnson…

A: The objective of the question is to calculate the annual return earned from the investment in…

Q: 1. Michael Jordan purchases (long) 10 shares of XYZ stock for 23.00 per share. Six months from now…

A: When someone purchases stock then prices may increase or may decrease and profit and loss can be…

Q: Jonathan purchased some corporate stock 8 years ago for $12,000. He received quarterly dividends of…

A: A share was bought 8 years ago. It had paid quarterly dividends regularly for 5 years, and then…

Q: Need answer please

A: If you have any problem let me know in comment box thankyou.

Q: 17) Quentin purchased 600 shares of stock on margin for $25.38 a share and sold the shares seven…

A: Step 1: Given that, Number of shares purchased = 600 Purchase price per share = $25.38 Selling price…

Q: JJ Industries will pay a regular dividend of $1.60 per share for each of the next four years. At the…

A: The concept of the dividend discount model enables the determination of the current value of a stock…

Q: One year ago, Jeff purchased 1 share of Buy-Mart stock. A share of Buy-Mart is currently priced at…

A: Let Initial Price be PFinal Price = $205.25Annual Dividend = $8.53Return = -5.56% or -0.0556We will…

Q: STL Inc. announces that it will pay a $75 per dividend next year, followed by a last dividend of $30…

A: To determine how Sue can achieve her goal of limiting her income from investments to no more than…

Q: Altamount decides not to pay a dividend for the next 8 years but decides to pay a dividend of $9 per…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Lisa Lasher buys 440 shares of stock on margin at $15 per share. If the margin requirement is 60…

A: Margin refers to the borrowed capital that the investor can use to acquire the shares in return for…

Q: Calculate your rate of return.

A: The rate of return is used to assess an investment's profitability. It determines the gain or loss…

Q: You own 1,000 shares of stock in Avondale Corporation. You will receive a $3.45 per share dividend…

A: Present value of  the stock refers to the present value of the cash flows or the earnings in the…

Q: You purchased 200 shares of XYZ common stock for $134 a share four years ago. The stock pays…

A: In this question we will be calculating the 6 year effective annual return on purchasing 200 shares…

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: John have just purchased a share of Amber Inc. preferred stock. Amber will pay a $10 annual…

A: Solution:- Preferred stock is the stock which has preference over common shares at time of payment…

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: Manifest Ltd announces that it will pay a $75 per dividend next year, followed by a final dividend…

A: Step 2 To limit her income to no more than $35 per share in the first year, Sue can reinvest the…

Q: You own 2,200 shares of stock in Avondale Corporation. You will receive a dividend of $1.50 per…

A: Total dividend in year 1= Number of shares * Dividend per share.2,200∗$1.50=$3,300Dividend…

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: J Industries will pay a regular dividend of $0.65 per share for each of the next four years. At the…

A: Regular dividend = $0.65Share price = $71Discount rate =8%Number of years = 4 years

Q: You own $107,000 worth of Smart Money stock. One year from now, you will receive a dividend of $2.95…

A: A share price refers to the stock price of a particular company. Investors invest in a particular…

Q: STL inc will pay a $75 per dividend next year, followed by a last dividend of $30 per share in the…

A: Step 1: Calculate Effective Dividend1) We know the second-year dividend is $30 per share.2) We are…

Q: David Davis is interested in purchasing the common stock of Pharoah, Inc., which is currently priced…

A: The stock is the capital of the company held by the shareholders of the company.