User Account

All Pages

Holding period return on this transaction

Assignment Help Finance Basics
Reference no: EM132199240

An investor buys 100 shares of a stock that is trading at? $50 on margin where the initial margin is 40%. The broker charges an annual interest rate on the loan portion of 8%. The dividend yield of the stock (using the current price) is 10%. The seller maintains the position for six months, and then sells the stock for $65. The holding period return on this transaction is closest ?to:

Reference no: EM132199240

Questions Cloud

Define the first two parameters so that they are modifiable : Write a function read_list() which prompts for the list of non-negative numbers terminated by -99.
Write a function named roots that solves quadratic equations : Write a function named 'roots' that solves quadratic equations using the quadratic formula: It should take as arguments three numbers a, b, and c.
Beginning of the period annual lease payment : Using the following information, compute the beginning of the period annual lease payment that the lessor would have to charge to realize the required after-tax
Write a function named triple whose only parameter : Write a function named triple whose only parameter is an integer pointer. In the main method and after calling the function, print the variable num.
Holding period return on this transaction : The seller maintains the position for six months, and then sells the stock for $65. The holding period return on this transaction is closest ?to:
Write a function named longest that has the prototype : The function returns a copy of the longest string in an array of strings. The end of the array is marked by an entry with a value of NULL.
What is the initial investment we would need : What is the Initial investment we would need in order to make this capital project a reality?
Demonstrate and test the function with a complete program : Write a function named replaceSubstring. The function should accept three C-string or string object arguments.
What the discount model is : Please explain what the discount model is, what is used for, and the benefits of using it.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the estimated regression model

Use the data to develop an estimated regression equation that could be used to predict the annual maintenance expense for a given number of hours of weekly.

  What is the internal rate of return

The Pam American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The new cost of this machine is $45,000. The annual cash flows have the following projections.

  What is the probability that the indicator would be correct

What is the probability that the indicator would be correct 35 or more times in 44 years? What does this tell you about the usefulness of this indicator?

  Homer boats has accounts payable days of 20 inventory days

homer boats has accounts payable days of 20 inventory days of 50 and accounts receivable days of 30. what is its

  Identify and assess three sources of growth option value

identify and assess three sources of growth option value for your chosen organization I will appreciate your assistance with this project. Some Ideas how to approach it.

  Revised estimate of the expected rate of return

If industrial production actually grows by 7%, while the inflation rate turns out to be 6.0%, what is your revised estimate of the expected rate of return on the stock?

  Home ownership and equity protection act

Is the Smiths' loan covered by the Truth-in-Lending Act as amended by the Home Ownership and Equity Protection Act? Why or why not?

  What will the price-earnings ratio of the postmerger firm

If there are no synergy gains, what will the share price of A be after the merger? What will the price-earnings ratio be? What does your answer for the share price tell you about the amount A bid for B? Was it too high? Too low? Explain.

  Which of the given numbers are more relevant

Cost of Debt. Go to finra-markets.morningstar.com/BondCenter/ and look up the outstanding bonds for Nike. Record the most recent price and YTM of each bond.

  What is the cost of capital for theis project

The debt-equity ratio is .65 and the tax rate is 36 percent. What is the cost of capital for theis project?

  What will be their optimal cash return point

The trading cost per sale or purchase of marketable securities to be $55 per transaction. What will be their optimal cash return point?

  Determine the annual cost of purchasing the new technology

Michelin is considering going ‘‘lights-out'' in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $600,000.

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