Margin and leverage, Margin and Leverage (LO3, CFA4)

Margin and leverage

Assignment Help Financial Management

Reference no: EM13987922

Margin and Leverage (LO3, CFA4) suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over that. You buy 1,000 shares at $40 per share with an initial margin of 50 percent. One year later, the stock is selling for $45 per share, and you close out your position. What is your return assuming no dividends are paid?

Reference no: EM13987922

Questions Cloud

Find the future values of these ordinary annuities : Find the future values of these ordinary annuities. Compounding occurs once a year. a. $400 per year for 10 years at 10% b. $200 per year for five years at 5% c. $400 per year for 5 years at 0% d. rework Parts a, b, and c assuming they are annuities ..

What emotions or thoughts do these visuals convey : How do the visuals of your event differ across your various media types? Do some media rely more heavily on visuals than others? What emotions or thoughts do these visuals convey

Compares the development of virginia with massachusetts bay : Write a short essay (4-5 pp., double spaced) that compares and contrasts the settlement and development of Virginia with that of Massachusetts Bay in the seventeenth century.

An analyst is evaluating a real estate investment project : An analyst is evaluating a real estate investment project using the discounted cash flow approach. The purchase price is $3 million, which is financed 15 percent by equity and 85 percent by a mortgage loan. It is expected that the property will be so..

Margin and leverage : Margin and Leverage (LO3, CFA4) suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over that. You buy 1,000 shares at $40 per share with an initial margin of 50 percent. One year later, the stock is selling for $45 per sh..

What rate of return must you earn on that savings : Imagine that your goal is to retire 34 years from today with $1,000,000 in savings. Assuming that you currently (i.e., today) have $5,000 in savings, what rate of return must you earn on that savings to hit your goal? Make sure to input all percentag..

Discuss one central concept from the week reading dykstra : Discuss One Central Concept from the week reading Dykstra, Robert C. that sparked a surpising new insight (One Paragaph)

Identical to GAAP retained earnings : Will Corporation has two over’s, Gus and Jack who are father and son. Gus owns 100 shares which he acquired in 2005 for 15,000. Jack owns 100 shares which he acquired in 2007 for 21,000. Will Corp. accumulated E and P is identical to GAAP retained ea..

In what ways are mbuti cultural practices similar to our own : In what ways are Mbuti cultural practices similar to our own? Despite our cultural differences, all human societies have some things in common (a need to get food, water, shelter, and social stability, as well as the need to make friends, teach ch..

User Account

All Pages