Whats the margin level one year later

Assignment Help Financial Management
Reference no: EM13872105

1) You decide to buy 1,000 shares of ABC Company at $50 per share with an initial margin of 50%, the call money rate is 6%. The stock has no dividend, and one year later ABC stock is at $57 per share.

A) What’s the margin level one year later?

B) What is your % return on your investment one year later?  

Reference no: EM13872105

Questions Cloud

Determine the difference h in the heights : A U-tube open at both ends is partially filled with water (a). Oil having a density of 750 kg/m3 is then poured into the right arm and forms a column L = 5.00 cm high (b) (a) Determine the difference h in the heights of the two liquid surfaces.
Calculates the value of a firms common stock : Utilizing the free cash flow approach calculates the value of a firm's common stock given the following information:
Prepare the amortization schedule for the note payable : Prepare the amortization schedule for the note payable. Determine the amount to report as interest expense on the income statement for the fiscal year ending March 31, 2015.
Write a check constraint that expresses : Write a CHECK constraint that expresses
Whats the margin level one year later : 1) You decide to buy 1,000 shares of ABC Company at $50 per share with an initial margin of 50%, the call money rate is 6%. The stock has no dividend, and one year later ABC stock is at $57 per share. What’s the margin level one year later? What is y..
Find the specific gravity of the liquid : A U-tube contains liquid of unknown specific gravity. An oil of density 800 kg/m3 is poured into one arm of the tube until the oil column is 12 cm high. The oil-air interface is then 5.0 cm above the liquid level in the other arm of the U-tube. Fi..
Prepare the journal entryies to record the redemption : This exercise will illustrate how to account for the redemption of bonds by cash payment prior to maturity. Prepare the journal entry(ies) to record the redemption of these bonds on July 1, 2014.
Calculate the cost of goods sold for glad stone company : Using the information in PA7-1, calculate the cost of goods sold and ending inventory for Glad-stone Company assuming it applies the LIFO cost method perpetually at the time of each sale. Compare these amounts to the periodic LIFO calculations in req..
Whats its turnover ratio : An open end mutual fund has average daily assets of $3.4 billion during the year. It sold $1.25 billion worth of stocks and bought $1.4 billion worth of stocks during the year. What’s its turnover ratio? Explain the difference between an open end fun..

Reviews

Write a Review

Financial Management Questions & Answers

  Operating and financial constraints placed on corporation

Operating and financial constraints placed on a corporation by loan provision are

  On 1 july 2009 abc ltd acquired 85 of the share capital of

on 1 july 2009 abc ltd acquired 85 of the share capital of xyz ltd by issuing 110000 shares.nbsp the market price of

  The capital structure that maximizes firm value

As a general rule, the capital structure that maximizes firm value, or stock price also maximizes the expected rate of return on equity (ROE), maximizes the weighted average cost of capital (WACC)

  Standard deviation of the rate of return on this investment

Suppose you have a project that has a 0.5 chance of tripling your investment in a year and a 0.5 chance of doubling your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calcula..

  Bonds for some much-needed expansion projects

BDJ Co. wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 7.8 percent coupon bonds on the market that sell for $1,125, make semi-annual payments, and mature in 25 years. Required: What coupon rate sho..

  Analyze the information contained in company balance sheet

Analyze the information contained in the company's Balance Sheet, Income Statement, Statement of Cash flows (Pages 13 - 17); "Notes to the Consolidated Financial Statements" pages 18 - 25 and the "Managements Discussion and Analysis of Financial ..

  You are to submit a detailed plan covering your operations

nbspyoyu are to submit a detailed plan covering your operations both nationally and internationally in addition to the

  What is the balance in the account now

Your grandparents opened an account for you when you were born, twenty years ago. They deposited $2,000 into the account at that time. If the account earned 4.5%, compounded annually, what is the balance in the account now (on your 20th birthday)?

  Calculate the firms net income

Garden Pro Corporation has sales of $4,611,770; income tax of $483,762; the selling, general and administrative expenses of $243,981; depreciation of $388,811; costs of goods sold of $2,496,450; and interest expense of $166,022. Calculate the firm’s ..

  What is one share of stock worth today if rate of return

A preferred stock pays an annual dividend of $2.60. What is one share of this stock worth today if the rate of return is 11.75%

  Indirect effects on project cash flow1 nbspprovide an

indirect effects on project cash flow1. nbspprovide an example of a sunk cost from your firm.2. nbspprovide an example

  The bond equivalent yield and the effective annual return

A Treasury bill with 136 days to maturity is quoted at 96.012. What is the bank discount yield, the bond equivalent yield, and the effective annual return? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal ..

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