Part of the purchase price, but neglect any tax effects

Assignment Help Financial Management
Reference no: EM131575633

Rate and Rate of Return Abby purchased 100 shares of her dad's favorite stock for exist25.80 per share exactly 1 year ago, commission free. She sold it today for a total amount of exist2865. She plans to invest the entire amount in a different corporation's stock today, but must now pay a exist50 commission fee. If she plans to sell this new stock exactly 1 year from now and realize the same return as she has just made, what must be the total amount she receives next year? Include the commission fee as a part of the purchase price, but neglect any tax effects.

Reference no: EM131575633

Questions Cloud

Bond valuation-what will be the price of these bonds : What will be the price of these bonds if they receive either an A or a AA? rating? The price of the Pybus bonds if they receive a AA rating will be
What amount must you donate to endow the scholarship : If the school's endowment discount rate is 7%, what amount must you donate to endow the scholarship?
Compute realized rate of return for investor : Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.
How the graph of the investment with the bonus : describe how the graph of the investment with the bonus differs from the graph of the investment without the bonus.
Part of the purchase price, but neglect any tax effects : Include the commission fee as a part of the purchase price, but neglect any tax effects.
What is the bond current market price : Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10% and yield to maturity is 8%. What is the bond's current market price?
Economic factors could be impacting the yield curve : What other economic factors could be impacting the yield curve at this point in time? Real events or anticipated events?
Capital market instruments : Which of the following is/are capital market instruments?
Stock price can go before he receives a margin call : What is the lowest the stock price can go before he receives a margin call?

Reviews

Write a Review

Financial Management Questions & Answers

  What causes bonds to sell for a premium

What causes bonds to sell for a premium?

  Find the dollar-weighted rate of return on this investment

Find the dollar-weighted rate of return on this investment. Find the time-weighted rate of return on this investment.

  A short 1-2 sentence response is required for the following

a short 1-2 sentence response is required for the following questions1.what are advantages and disadvantages of stock

  What was the lowest dividend yield over the past year

Find the quote for the Laclede Group. Assume that the dividend is constant. What was the lowest dividend yield over the past year? What was the highest dividend yield over the past year?

  Currently pays no dividends

CCS Inc. currently pays no dividends, but intends to pay a $12.00 per share dividend three years from today. However, CCSI expects earnings and dividends to decrease 5% annually thereafter. If the required rate of return for stocks with similar risk ..

  What amount of the payment will represent interest

When you make the SECOND payment, two years from today, what amount of the $7, 760.67 payment will represent interest?

  Preferred stock outstanding with market value per share

The Dry Well has 6.25 percent preferred stock outstanding with a market value per share of $49 and a book value per share of $25. What is the cost of preferred stock? Casino Games Company preferred stock pays a perpetual annual dividend of 3.6% of it..

  This debt must be repaid in two equal instalments

Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..

  Find the present value of a perpetuity under which payment

Find the present value of a perpetuity under which a payment of 100 is made after one year, 200 after 2 years, increasing until a payment of 1500 is made, after which payments are level at 1500 per year forever. assume i = 0.075.

  Lease obligation fixed assets equity total assets

Two companies, Energen and Hastings Corporation, began operations with identical balance sheets. A year later, both required additional fixed assets at a cost of $25,000. Energen obtained a 5-year, $25,000 loan at a 10% interest rate from its bank.  ..

  Channel support systems initiative will increase demand

Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds. For simplicity, assume that the demand increase and margins will remain at last year's levels...

  What is the present value of this growing perpetuity

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02 annually. If you use ..

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!

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