You sell short 400 shares of MIZ which are currently selling at $ 15 per share . You post the 30 % margin required on the short sale . If you earn no interest on the funds in your margin account what will be your rate of return after one year if MIZ is selling at $ 12

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: Suppose you purchase 500 shares of Blue Acre, which currently trading at $60 per share. Suppose that…

A: Margin trading involves borrowing funds from a broker to purchase securities, such as stocks, bonds,…

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: Beta Corporation is expected to pay the following dividends per share over the next two years,…

A: Most amount willing to pay is present value of all future cash flows discounted at required rate of…

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: An investor buys 200 shares of stock selling at ​$71 per share using a margin of ​70%. The stock…

A: STEP 1 A rate of return for a time period that is shorter than a year but is calculated as if it…

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: 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 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: 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: You can purchase stock from XYZ Corp at a price of $50/share.  You purchase 100 shares today, and…

A: Here, To Find: Value of shares after 5 years =?

Q: You decide to sell 100 shares of Topgun Enterprises Inc. short when it is selling a yearly high of…

A:

Q: You are bearish on Ali baba’s stock and decide to sell short 100 shares at the current market price…

A: Given Information: Current market price = $50 Number of shares = 100

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: You have $50,000 to invest. You want to either invest it all in one stock, or in options. The stock…

A: Stocks represent ownership in a company and are bought and sold in the stock market. They can…

Q: You've just opened a margin account with $27,755 at your local brokerage firm. You instruct your…

A: The dollar returns on the stock investment will be the sum of capital gains due to the appreciation…

Q: Company X is paying an annual dividend of $4.00 and has decided to pay the same amount forever.…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

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: No excel You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you…

A: Let’s find the profit from trading

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Value of Purchase = $10000 Stick Price = $40 per share Number of Share =10000/40 = 250 Initial…

Q: An investor puts up $16,000 but borrows an equal amount of money from his broker to double the…

A: RATE OF RETURNRate of Return is the Ratio between Net Income & Investment.Return on Investment…

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Given information: Investment : $10,000 Stock price: $40 Initial margin: 70% Broker fees : 10%…

Q: You short sell 200 shares of stock at $48.23 per share and cover your short positio three months…

A: Rate of return is the amount of profit or loss on the investment made as a percentage of initial…

Q: An investor buys $17 thousand dollars of ABT stock at $20 per share, using 58% initial margin. The…

A: The margin account refers to the account where an investor can purchase stocks while paying only…

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…

Q: u purchase 2,000 shares of Nice Kick Group (NKG) at $45 per share by giving your broker $60,000 to…

A: When you start trading at broker than you have to pay initial margin money and later on to keep…