User Account

All Pages

Interest charge on the margin loan

Assignment Help Finance Basics
Reference no: EM131114066

You have just bought on margin 100 shares of IBM Corp. common stock for $108 per share. One year from now you expect to sell the stock for $140. The interest charge on the margin loan will be 9%. What percentage of rate of return do you expect to earn on your investment?

Reference no: EM131114066

Questions Cloud

Inventory errors periodic thomason company : Ending inventory is correct, but a purchase on account was not recorded. (Assume this purchase was recorded and paid for in the following year.)
Briefly describe the physical or mental health issue : Differences between genders in the incidence, mortality rate, diagnosis, and prognosis of that health issue - what are the gender-related lifestyle and behavioral differences that lead to and prevent the health issue?
What is the intuition of discounting the various cash flows : What is the intuition of discounting the various cash flows in the APV model at specific discount rates?
Draw the logic diagram of the enabled d latch : Draw the logic diagram of the enabled D latch using only NAND gates.
Interest charge on the margin loan : One year from now you expect to sell the stock for $140. The interest charge on the margin loan will be 9%. What percentage of rate of return do you expect to earn on your investment?
What is the nature of a concessionary loan : What is the nature of a concessionary loan and how is it handled in the APV model?
Percentage of this loss will the insurance company : a. How much insurance should they have carried to meet the coinsurance obligation? b. What percentage of this loss will the insurance company pay? c. How much of the loss will George and Nancy have to absorb?
What is tom regans position : How do we determine the difference between higher and lower pleasures, according to Mill - What is Tom Regan's position about the use of animals in research and agriculture?
Set up a table for a 4-to-10 line excess-3 decoding : Each combination is found by adding 3 to the decimal number being coded and translating the result into direct binary form. Set up a table for the excess-3 code for the 10 decimal digits.

Reviews

Write a Review

Finance Basics Questions & Answers

  Maximizing investor losses

After reviewing the scenario, compare and contrast the at-risk rules and passive activity limits. Discuss the purpose for each, and suggest at least two (2) tax-planning strategies for ensuring that the IRS allows passive losses in order to reduc..

  What percentage of the portfolio must be invested

Quippy Inc ("Quippy") and Whippy Inc ("Whippy") have common shares listed on the New York Exchange. Assume that the S&P 500 Index represents the market portfolio.

  Capitals benefit sharing proportion

B and C brought as much money as would acquire their capitals benefit sharing proportion and the firm would have trade in for spendable dough hand Rs. 3,000.

  What is the initial investment

a. What is the initial investment? b. What is the Cash Flow at year 1? c. What is the Cash Flow at year 4? d. Is this a good investment? (hint: Compute NPV)

  Amazonrsquos original aim was to be the worldrsquos largest

often organizations enter the marketplace with one approach and model. as the economy and demands shift and technology

  The historical simulation hs approach is based on the

the historical simulation hs approach is based on the empirical distributions and a large number of risk factors. the

  What was the rate of return on the funds

Your grandmother put $35,000 aside for you 13 years ago. Today, the account is worth $76,432.16. Assuming the money was invested with a daily compounding, what was the rate of return on the funds your grandmother saved?

  Construct and explain an approach to the acquisition that

the wycombe company is doing well and is interested in diversifying so its been looking around for an acquisition

  What is the percentage return on coca-cola stock

What is the percentage return on Coca-Cola stock for someone who bought it a year ago when its price was $31.89 per share if the investor was paid $1.14 per share in dividends and the price today is $40.77?

  Is there enough evidence to reject the claim

At a=.05 is there enough evidence to reject the claim? Test the claim about the population proportion.

  Attracting foreign direct investment

A developing country wants to become more global, hoping to increase the pace of its economic growth and improve the quality of life for its people. It wants to achieve this by attracting foreign direct investment.

  What is the expected rate of return on the project

Consider the following probability distribution of returns estimated for a proposed project that involves a new ultrasound machine.

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