User Account

All Pages

What is the percentage earned by investor a

Assignment Help Finance Basics
Reference no: EM131198249

Investor A makes a cash purchase of 100 shares of AB&C common stock for $45 a share. Investor B also buys 100 shares of AB&C but uses margin. Each holds the stock for one year, during which dividends of $4 a share are distributed. Commissions are 4 percent of the value of a purchase or sale; the margin requirement is 50 percent, and the interest rate is 8 percent annually on borrowed funds.

a. What is the percentage earned by investor A if he or she sells the stock after one year for $30? Round your answer to one decimal places.

b. What is the percentage earned by investor B if he or she sells the stock after one year for $30? Round your answer to one decimal places.

Reference no: EM131198249

Questions Cloud

Determine the top-three concepts or skills you learned : Determine the top-three concepts or skills you learned in this course that you believe will be the most useful to you in your present or future professional career or education.
Whether statement below is reflection of mutual agency : Indicate whether each statement below is a reflection of-  voluntary association, a partnership agreement, limited life or mutual agency.
Draw a time domain block diagram for two coupled windings : Use Σ and 1/p to denote summation and integration, respectively.
Determine the energy stored in the inductor : Determine the energy stored in the inductor WeS and the energy dissipated by the resistor WeL for i > 0 if i(0) = 10 A.
What is the percentage earned by investor a : What is the percentage earned by investor A if he or she sells the stock after one year for $30? Round your answer to one decimal places. What is the percentage earned by investor B if he or she sells the stock after one year for $30?
What ethical issues arise from working with children : What are the primary interventions and methods human service professionals use to prevent child abuse and neglect in a family setting? What are the primary interventions and methods human service professionals use to prevent child abuse and negle..
Classifying costs as materials or labor or factory overhead : Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:
What is an identifying feature of new orleans jazz : Which musical was path-breaking in presenting a serious plot line, which was a landmark in its use in dance to advance the plot, and was the first to address the contemporary problems with the contemporary music?
Compute prances total income tax expense : Assuming that the relevant U.S. tax rate is 35%, compute Prance's total income tax expense, current income tax expense, and deferred income tax expense.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd