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can be obtained at an An investor buys 300 shares o stock seling a $76 per...
An investor buys 100 shares of stock selling at $76 per share using a margin of...
An investor buys 100 shares of stock selling at $76 per share using a margin of 67%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 8.6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $110 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $110...
An investor buys 200 shares of stock selling at $89 per share using a margin of...
An investor buys 200 shares of stock selling at $89 per share using a margin of 59%. The stock pays annual dividends of $ 2.00 per share. A margin loan can be obtained at an annual interest cost of 9.6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $111 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to...
An investor buys 200 shares of stock selling at $66 per share using a margin of...
An investor buys 200 shares of stock selling at $66 per share using a margin of 74%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 8.9%. Determine what return on invested capital the investor will realize if the price of the stock increases to $108 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $108...
P2.13 (similar to) -Question Help * An investor buys 200 shares of stock selling at $90...
P2.13 (similar to) -Question Help * An investor buys 200 shares of stock selling at $90 per share using a margin of 62% The stock pays annual dividends of $2 00 per share A margin loan can be obtained at an annual interest cost of 8.4%. Determine what return on invested capital the investor will realize if the price of the stock increases to $107 within six months. What is the annualized rate of return on this transaction? If the...
(3) An investor buys $8,000 worth of a stock priced at $40 per share using 50%...
(3) An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 6% on the margin loan and requires a 30% maintenance margin. In one year the investor has interest payable and gets a margin call. What is the stock price that triggers the margin call? How much additional cash should the investor put in his account to restore the 50% initial margin after receiving the margin call? Suppose that the...
Assume that an investor buys 100 shares of stock at $35 per share, putting up a...
Assume that an investor buys 100 shares of stock at $35 per share, putting up a 73% margin. a. What is the debit balance in this transaction? b. How much equity funds must the investor provide to make this margin transaction? c. If the stock rises to $54 per share, what is the investor's new margin position? a. The debit balance in this transaction is s (Round to the nearest dollar.) b. The amount of equity funds the investor must...
Sara Sanders purchased 30 shares of Apple stock at $190.82 per share using the prevailing minimum...
Sara Sanders purchased 30 shares of Apple stock at $190.82 per share using the prevailing minimum initial margin requirement of 58%. She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period. During the 6-month holding period, the stock paid $1.49 per share in cash dividends. Sara was charged 5.4% annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial value of the transaction,...
Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 55.36 per share using the...
Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 55.36 per share using the prevailing minimum initial margin requirement of 54%. She held the stock for exactly 7 months and sold it without any brokerage costs at the end of that period. During the 7-month holding period, the stock paid $ 1.64 per share in cash dividends. Marlene was charged 7.8 % annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial...
Allan purchased 500 shares of stock on margin for $31.75 a share and sold the shares...
Allan purchased 500 shares of stock on margin for $31.75 a share and sold the shares five months later for $34.50 a share. The initial margin requirement was 65 percent and the maintenance margin was 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return?
Lisa Lasher buys 400 shares of stock on margin at $30 per share. If the margin...
Lisa Lasher buys 400 shares of stock on margin at $30 per share. If the margin requirement is 40 percent, how much must the stock rise for her to realize a 15-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent. $
An investor buys 100 shares of stock selling at $76 per share using a margin of 67%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 8.6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $110 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $110...
An investor buys 200 shares of stock selling at $66 per share using a margin of 74%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 8.9%. Determine what return on invested capital the investor will realize if the price of the stock increases to $108 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $108...
P2.13 (similar to) -Question Help * An investor buys 200 shares of stock selling at $90 per share using a margin of 62% The stock pays annual dividends of $2 00 per share A margin loan can be obtained at an annual interest cost of 8.4%. Determine what return on invested capital the investor will realize if the price of the stock increases to $107 within six months. What is the annualized rate of return on this transaction? If the...
Assume that an investor buys 100 shares of stock at $35 per share, putting up a 73% margin. a. What is the debit balance in this transaction? b. How much equity funds must the investor provide to make this margin transaction? c. If the stock rises to $54 per share, what is the investor's new margin position? a. The debit balance in this transaction is s (Round to the nearest dollar.) b. The amount of equity funds the investor must...
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