User Account

All Pages

Find holding period return and annualized return

Assignment Help Finance Basics
Reference no: EM132780743

1. You purchased 100 shares of IBM common stock on margin at $65 per share. Assume the initial margin is 50% and the maintenance margin is 25%.

(1) Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

(2) Assume the interest rate is 4%. What is the holding period return (HPR) and Annualized Return if price of the stock goes up to $80 in 6 months?

(3) Assume the interest rate is 4%. What is the holding period return (HPR) and Annualized Return if price of the stock goes down to $40 in 6 months?

Reference no: EM132780743

Questions Cloud

Calculate the annual cash flow from assets : Assume that a publicly traded technology company has 2,000,000 shares outstanding and faces a marginal tax rate of 25%.
Beta and capital budgeting : Explain to your classmates what beta means and how it can be used for managerial and/or investment decision
Key limitations of relying on the ftc : What are some of the key limitations of relying on the FTC as the main federal regulator of consumer privacy issues?
Which viewpoint is correct and why : The president says that it doesn't matter which way Mr. Brown's salary cost is classified. Which viewpoint is correct? Why
Find holding period return and annualized return : 1. You purchased 100 shares of IBM common stock on margin at $65 per share. Assume the initial margin is 50% and the maintenance margin is 25%.
Describe what privacy and data breach mean : Briefly describe what Privacy and data breach means and what measures do we have in place to stop these breaches occurring?
Compute the variable overhead spending variance : For simplicity, assume there was no inventory of materials at the beginning or end of the period. Compute the variable overhead spending variance
Distinguish between the two debt markets : Blackmores needs to borrow money for the purpose of purchasing a long -term asset. Given the fact that the cost of borrowing is usually cheaper
Explain challenges associated with big data analytics : The recent advances in information and communication technology (ICT) has promoted the evolution of conventional computer-aided manufacturing industry to smart.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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