The stock pays an annual dividend

Assignment Help Financial Management

Reference no: EM131341955

An investor buys 1,000 shares of a stock on margin at a price of $ 50 per share. The initial margin requirement is 40% and the margin lending rate is 3 %. The investor’s broker charge a commission of $ 0.01 per share on purchase and sales. The stock pays an annual dividend of $ 0.30 per share. Once year later, the investor sells the $ 1,000 shares at a price of $56 per share. The investor’s rate of return is closet to?

Reference no: EM131341955

Questions Cloud

Write a research paper about china and the property laws : Write a research paper about china and the property laws and anything else you want to add about china to make the research easier.use mla 7, summarize sources ,5 sources alphabetically.

What is the price of the option today using six-month steps : You are in discussions to purchase an option on an office building with a strike price of $63 million. The building is currently valued at $60 million. The option will allow you to purchase the building either six months from today or one year from t..

Construct a stem and leaf diagram with the last digit : Construct a stem and leaf diagram with the last digit being a leaf and the first digit a stem. Repeat stem values twice.-

Computer stocks currently provide expected rate of return : Computer stocks currently provide an expected rate of return of 17%. MBI, a large computer company, will pay a year-end dividend of $2.10 per share. If the stock is selling at $51 per share, what must be the market's expectation of the growth rate of..

The stock pays an annual dividend : An investor buys 1,000 shares of a stock on margin at a price of $ 50 per share. The initial margin requirement is 40% and the margin lending rate is 3 %. The investor’s broker charge a commission of $ 0.01 per share on purchase and sales. The stock ..

Modify model to be able to take input from the real world : Look through the NetLogo models library and try to find a model that can be augmented with an interface device such as a GoGo Board or Arduino, Modify the model to be able to take input from the real world.

Supernomal growth discounted model : Supernomal growth discounted model. Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 7% per year.

Price at which the investor would receive margin call : An investor buys a stock at $ 32 a share and deposits 50% initial margin. Assume that the maintenance margin is 25%, the stock pays no dividends, and the transaction costs and interest on the margin loan are zero. The price at which the investor woul..

Construct a stem and leaf diagram with the last digit : Construct a stem and leaf diagram with the last digit being a leaf and the first digit a stem. Repeat stem values twice.

User Account

All Pages