Stock with margin and without margin

Assignment Help Financial Management
Reference no: EM13847483

1. Suppose you sell the stock at a price of $37. What is your return? What would your return have been had you purchased the stock without margin? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

With margin %

Without margin %

Reference no: EM13847483

Questions Cloud

Describe how acquisition affects number balance sheet : The book value of Little Statistic’s total assets is $400,000. Suppose Number Crunching Inc. acquires Little Statistic’s assets for $1 million and finances the purchase by selling $600,000 in new stock, $300,000 in new debt, and reducing cash by $100..
Why is this figure different from its accounting income : During 2011, Lele Design earned net income of $250,000. The firm neither bought nor sold any capital assets. The book value of its assets declined by the year’s depreciation charge of $200,000. The firm’s operating cash flow for the year was $450,000..
Global financing and exchange rate topics : Explain how your topic is used in global financing operations and describe its importance in managing risks.
What must the liquidating dividend be : JJ Industries will pay a regular dividend of $2.3 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend. If the discount rate is 7 percent, and the current share price is $64. Wh..
Stock with margin and without margin : Suppose you sell the stock at a price of $37. What is your return? What would your return have been had you purchased the stock without margin?
Calculate value of share of stock-discounted dividend model : Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: the investors required rate of return 14%. the expected level of earning at the end of the year (E1) is $5. the firm follows a policy o..
Applying results to both unlevered and levered firms : When calculating WACC and applying the results to both unlevered (no debt) and levered (debt) firms, the levered firm is shown to be more valuable. Two identical firms and the firm with debt is more highly valued. Does this make sense? Why or Why not..
Do you agree with the conviction and acted ethically : Martha Stewart and her Investment Counselor were indicted, convicted, and did jail time for insider trading. Go on the Internet and find an article about Martha’s case. Do you think they acted ethically? Do you agree with the conviction? Explain why ..
Average arithmetic returns overstate the return on portfolio : If an asset’s returns come from a normal distribution, then the relation between its arithmetic and geometric averages are: E[arithmetic average] = E[geometric average] – 0.5σ2. Relative to a buy and hold strategy, average arithmetic returns overstat..

Reviews

Write a Review

Financial Management Questions & Answers

  Zero coupon bonds on the market at a price

Atlantis Fisheries issues zero coupon bonds on the market at a price of $364 per bond. Each bond has a face value of $1,000 payable at maturity in 18 years. It is callable in 9 years at a call price of $490.

  Expected return and standard deviation

Security A has an expected return of 8%t and a standard deviation of 20%. Security B has an expected return of 10% and a standard deviation of 50%. If you place half of your money in each stock, what is your expected return?

  What is the equivalent taxable yield

For a municipal bond paying 3.4 percent for a taxpayer in the 25 percent tax bracket, what is the equivalent taxable yield?

  Value of foreign stocks in an investment portfolio

Discuss the value of foreign stocks in an investment portfolio. Do you want them? If so, which ones? Do you diversify the classes as you would domestic stock? If so, what classes would you select? Are there any countries you would avoid? What about a..

  Very flexible in your repayment plan

You borrowed $20,000 today from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance. Suppose your payment plan is as follows

  Value of firm after has successfully issued perpetual debt

HoneyBowl Corporation has perpetual earnings before interest and taxes (EBIT) of $5,000,000. It has since had no debt in its capital structure, and its cost of equity is 15%. The corporate tax rate is 40%. Compute the value of HoneyBowl Corporation b..

  Get average receivables of discount customers

Sell on term 1/10, net 30. Gross sales last year $4,821,500 and accounts receivable averaged $434,500. Customers paid on tenth day and took discount. What are the nominal and effective cost of trade credit to non discount customers

  What is the firms cost of preferred stock

What sources of capital should be included when you estimate XYZ's WACC? and Should the component costs be estimated on a before or after-tax basis? Why?

  Conduct customer segment research or go directly to market

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 60 percent change of success. However, the firm can conduct customer segment research, which will take a year and cost $600,000. By g..

  Estimate the residual value and perform firm valuation

Estimate the Residual Value and perform the corresponding firm valuation.

  Calculate their after tax cost of debt expressed

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semi annual interest payments. Bond A has a coupon rate..

  What is the markets expectation today of the average level

A 5-year corporate bond has an 8 percent yield. A 10-year corporate bond has a 9 percent yield. The two bonds have the same default risk premium and liquidity premium. The real risk-free rate, r*, is expected to remain constant at 3 percent.

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