What is the holding period return

Assignment Help Financial Management
Reference no: EM13883727

Assume you short sell 300 share of the stock of EFG Corporation. Margin requirements are 60 percent. The price was $34 per share. One year later, the price of the stock is $35 per share. During that time, the company paid $0.75 per share in dividends. What is the holding period return?

Reference no: EM13883727

Questions Cloud

Shuttle eze operates airport shuttle vans in twelve : Shuttle Eze operates airport shuttle vans in twelve large cities Describe the advantages and disadvantages of using a centralized database for Shuttle-Eze.
Describe the incident and its environmental impact : Describe the incident and its environmental impact
What market structure best describes the pizza market : Consider the pizza market in a small college town with the following assumptions: The market is in long-run equilibrium. Each pizza shop sells 100 pizzas per week. (For ease of exposition, suppose that each shop sells only pizza and only one size.) W..
The values of the sysuptime in the system group : An SNMP manager sends a request for the values of the sysUpTime in the System group. Write the PDU with the fields filled in for the get-request PDU
What is the holding period return : Assume you short sell 300 share of the stock of EFG Corporation. Margin requirements are 60 percent. The price was $34 per share. One year later, the price of the stock is $35 per share. During that time, the company paid $0.75 per share in dividends..
A network manager discovers that a network component : A network manager discovers that a network component is performing poorly and issues an order to the technicians to replace it. Which MIB group contains the information for the technician to find out the physical location of the component?
Explain how the sources of energy you identified impact : Explain how the sources of energy you identified impact the environment
Common equity is higher than cost of internal equity : If the cost of new common equity is higher than the cost of internal equity, why would a firm choose to issue new common stock? Explain the difference between WACC and MCC. What determines whether to use the dividend growth model approach or the CAPM..
User defined objects with constructors : User defined objects with constructors A two dimensional array  Objects are an important part of this project. I want to see that you have an understanding of how to develop your own objects/classes.

Reviews

Write a Review

Financial Management Questions & Answers

  The hamptons home of a famed socialite hits the market

“Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, renowned for her beauty and wealth. Now Ms. Balsan’s Hamptons home is currently worth $28 million. Calculate the annual compound growth rate of..

  Calculating cost of preferred stock

Calculating Cost of Preferred Stock. Sixth Fourth Bank has an issue of preferred stock with a $6.25 stated dividend that just sold for $108 per share. What is the bank’s cost of preferred stock?

  Cost of goods sold-administrative and selling expenses

During the year, Belyk Paving Co. had sales of $2,392,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,433,000, $435,800, and $490,800, respectively. In addition, the company had an interest expense of $2..

  Determine the measures for 2012

Determine the measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Assume 365 days a year.

  Yield to maturity and call with semi annual payments

Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semi annually. The price of the bonds is $1,050. The bonds are callable in 5 years at a call price of $1,050. What is their yield ..

  What would be the additional funds needed

Broussard Skateboard's sales are expected to increase by 25% from $7.2 million in 2013 to $9.00 million in 2014. Its assets totalled $6 million at the end of 2013. Broussard is already at full capacity, so its assets must grow at the same rate as pro..

  Uses the proceeds to repurchase shares

Dupuis can borrow at 12.00 percent. Dupuis currently has no debt, and the cost of equity is 15 percent. The current value of the firm is $676,000. The corporate tax rate is 38 percent. What will the value be if Dupuis borrows $227,000 and uses the pr..

  Debt obligations outstanding during the construction period

Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,016,100 on January 1, 2014. Harrisburg expected to complete the building by December 31, 2014. Harrisburg has ..

  What price must you expect frostville stock

Assume Corporation has a current stock price of $50 and will pay a $1.5 dividend in one year; its equity cost of capital is 12%. What price must you expect Frostville stock to sell for immediately after the firm pays the dividend in one year to justi..

  The direct spot quotes on the pound

The direct spot quotes on the pound in New York are $1.4783 – 91. The 30-day forward quotes in points are (bid - ask) 14 – 9. What is the outright 30-day forward bid quote?

  Buys stream of lottery payments

On may 1,2008 your client won 21.25 million in the Wisconsin lottery. The lottery commission gave them the option of receiving a lump sum or a 25-year annuity paying 850,000 each year, with the first payment received on May 1, 2008 and the last payme..

  An unlevered corporation has net income

An unlevered corporation has net income of $50,000 and a required rate of return of 14%. What would the value of this firm be if it borrowed $125,000 to buy back some of its stock? Assume a corporate tax rate of 35%. Show work

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