You purchased 269 shares of common stock on margin for $45.22 per share.  The initial margin is 50% and the stock pays no dividend.  Your rate of return would be __________ if you sell the stock at $48 per share.  Ignore interest on margin.   Group of answer choices   21.08% 14.05% 15.81% 19.32% 12.30%

Q: Answer the multiple-choice question below: 1. LUCELEC’s preferred shares pay a dividend of $4.50.…

A: Preferred Shares: Preferred Share is one kind of ownership that has a preference for the claims of…

Q: The periodic money weighted rate of return on the investment is closest to:

A: We can determine the time-weighted return by determining the IRR of the cash flows.

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: Dividend discount model will be used and applied here. As per the dividend discount model the value…

Q: You purchased 100 stocks 3 months ago at $50 per share. Today you received a dividend payment of…

A: Holding period return is the amount of gain or loss during the period in which stock is held for the…

Q: An investor buys one share of a stock at $85 at t= 0. He buys an additional share for $90 at t=1.…

A: Given information: Stock price in year 0 is $85 Stock price in year 1 is $90 Stock price in year 2…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Geometric average rate of return will be calculated considering return in each period. Following is…

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: In this question, we are required to determine the price per share of the company's stock.

Q: Assume you sell short 100 shares of common stock at BDT $50per share, with initial margin at 0.5.…

A: Margin money is the minimum required money needed to trade a derivative contract. It is a percentage…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: The dollar weighted rate of return is calculated on the basis of the value of the investment at the…

Q: You purchased 200 shares of ABC common stock on margin at $60 per share. Assume the initial margin…

A: given information purchased shares = 200 shares common stock at margin = 60 per share initial margin…

Q: You purchased 250 shares of common stock on margin for $25 per share. The initial margin is 80%, and…

A: The rate of return that an investor is expected to earn from the investment is termed as the…

Q: You’ve borrowed $22,000 on margin to buy shares in Ixnay, which is now selling at $32 per share.…

A: Borrowed amount = $22,000 Your own equity = $22,000  Total Investment = $44,000 No. of shares bought…

Q: You purchased 100 shares of common stock on margin for $30 per share. The initial margin is 50%, and…

A: Initial Investment = Number of Common Shares*Purchase Price Per Share*Initial Margin Percentage=…

Q: You purchased 250 shares of common stock on margin for $ 28 per share . The initial margin is 70 %…

A: The term margin is used in the stock market during trading. It means the initial payment made to the…

Q: A stock sells for $15 per share. You purchase 100 shares for $15 a share (i.e., for $1,500), and…

A: A share represents a single unit in the equity share capital. Share capital is a total of shares…

Q: Assume you purchase a share of stock for $50 at time t=0, and another share at $65 at time t= 1, and…

A: Step 1 The returns for each holding period or sub-period are multiplied by the time-weighted return…

Q: You have the following share price of XYZ.   DATE Price 2-Mar-2021 $100 3-Mar-2021 $60…

A: Purchase Value = No. of shares * Share price  Purchase Value = 100 shares * $100 = $10000

Q: Assume that an investor buys 100 shares of stock at $37 per share, putting up a 65% margin. a. What…

A: A margin account refers to a brokerage account where securities are bought by paying only a portion…

Q: C) usually with the assistance of an investment banker. D) A and B. E) B and C. 2. You purchased 100…

A: Since, there are four different questions we have answered question 2 as question 1 is incomplete.…

Q: You purchased 395 shares of ABC common stock on margin at $25 per share. Assume the initial margin…

A: The amount of margin that you as an investor has taken from your broker: Margin per share  =  Stock…

Q: Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%.…

A: Total Cost of buying shares = 1000 shares * $35 per share Total cost of buying shares =$35,000 Your…

Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin…

A:

Q: Suppose that an investor purchases the common stock at the current market price of $58/share and…

A: An investor takes a long stock and a short call position. The net profit (loss) from the position…

Q: 15. You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70%…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is…

A: Holders of common stock have specific rights, common shareholders get the following privileges:…

Q: You purchased a share of stock for $20. One year later, you received $1 as a dividend and sold the…

A: The holding period return is based on the difference between the final price and the initial price,…

Q: You find that the bid and ask prices for a stock are $13.45 and $14.00, respectively. If you…

A: We can determine the total implied and actual transactional costs using the formula below:

Q: You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and…

A: The formula used is shown:

Q: You purchased 100 shares of ibm common stock on margin at $70 per share. Assume the initial margin…

A: There are various sources that are used by the company in order to raise the finance, one of them is…