Please explain the solution to this general accounting problem with accurate explanations. You purchase 300 shares of New Vision Inc. stock on margin at a price of$80. Your broker requires you to deposit $12,000.Suppose you sell the stock at a price of $92. What is your return? Whatwould your return have been had you purchased the stock withoutmargin?

Step 1: Definition of Return on Investment (Margin vs. Non-Margin)Return on investment (ROI) is the…

Answered: You purchase 300 shares of New Vision…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please correct answer the following requirements on these accounting question
Suppose that an investor purchases the common stock at the current market price of $58/share and simultaneously sells for $12 a call to buy the shares at the strike price of $50. At the expiration of the call, price of stock is $77. What is the net profit on the position for this investor? (Round your answer the nearest dollar, do not enter with the dollar sign)
An investor tells their broker to short 1,000 shares of a stock that is currently priced at $50. Is the investor betting that the price will go up or down in this scenario? Where do the shares for a short sale come from?
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What is the initial margin requirement?
You short sell 100 shares of a stock at $120. The broker charges a $1 fee per share shorted. The price increases to $135 and you decide to cover the short by buying back all the shares. What is your total loss from this transaction? (answer a positive integer, e.g., 1000 for a $1000 loss)
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $46.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $50.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $58.50 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $43.00 At the end of year 1, you receive a dividend of $2, and buy one more share for $47.00. At the end of year 2, you receive total dividends of $4 (e., $2 for each share), and sell the shares for $55.00 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.) Return 1%
You purchase a share of Under Armour stock for £50. One year later, after receiving a dividend of €2, you sell the stock for €52. What was your holding period return?
You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for $166 per share. You receive a dividend of $2.27 a share. a.What is your total dollar return? b. What are your dividend yield, capital gain yield, and total percentage return? Note: don't use chat gpt.
You purchase 460 shares of stock at $37.60 per share. Several months later you sell the shares at $33.10. Your broker charges 2% commission on round lots and 3% on odd lots. Calculate the gain or loss (in $) on the transaction. Enter a number. Need Help? Read It Watch It Master It

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You purchase 300 shares of New Vision Inc. stock on margin at a price of $80. Your broker requires you to deposit $12,000. Suppose you sell the stock at a price of $92. What is your return? What would your return have been had you purchased the stock without margin?