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Suppose you purchase 600 shares of stock at $33 per share with an initial cash investment of $9,900. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. a. Calculate your return on investment one year later if the share price is $41. Suppose instead you had simply purchased $9,900 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Rate of Return With margin Without margin b. Calculate your return on investment one year later if the share price is $33. Suppose instead you had simply purchased $9,900 of stock with no margin. What would your rate of return have been now? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Rate of Return With margin 1%|b. Calculate your return on investment one year later if the share price is $33. Suppose instead you had simply purchased $9,900 of stock with no margin. What would your rate of return have been now? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Rate of Return With margin Without margin c. Calculate your return on investment one year later if the share price is $17. Suppose instead you had simply purchased $9,900 of stock with no margin. What would your rate of return have been now? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Rate of Return With margin Without margin

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text General ta copy ▼ B า 프 . Ej- a-Δ. : rーー 逻锂函Merge & Center. $ % , to: Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting D1160 DE DF DG DH DI DJ DK DL DM DN DO DP DQ DR 160 161 162 163 164 165 166 167 168 169 170 WITH MARGIN 600 X 33- PURCHASE VALUE OF SHARES OWN FUNDS BORROWED FUNDS 19800 9900 9900 INITIAL INVESTMENT = 9900 PRICE RISES TO 41 600 X 41- 172 173 174 175 176 VALUE OF INVESTMENT- PAYMENT TO A BROKER WITH INTEREST- 9900(1+ 6.5%)- MY POSITION AFTER PAYMENT TO A BROKER OWN INVESTMENT = FINAL PROFIT- 24600 10544 14057 9900 4157 RATE OF RETURN ON INVESTMENT=4157/9900 = 41.98% 178 WITHOUT MARGIN トト | STOCK DIV , NAV HEDGE FUND MF , EV PE EPS DIV . ABNORMAL APV ROSS deberk , MARGIN MONEY al tax / PB ROPI EVA MVALEVERAGED BUY 福 130% 06:28 31-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum Calibri ー E ゴWrap Text General aCopy Paste f Format Painter B 1 u. .Δ ーー 逻锂函Merge & Center. $ , % , t8.0: Conditional asor battles* Insert Delete Format Sort & Filter Selectマ . 2 Clear Clear, Formatting, as Table w styles. Styles ▼ ㆆ ▼ Clipboard Font Alignment Number Cells Edting DF188 DE DF DG DH DI DJ DK DL DM DN DO DP DQ DR 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 il 1 I STOCK DIV NAV HEDGE FUND MF | EV PE EPS DİV . ABNORMAL APV ROSS ! deberk MARGIN MONEY WITHOUT MARGIN INVESTMENT VALUE OF INVESTMENT- PROFIT = RATE OF RETURN ON INVESTMENT: 4800/19800- 600 X 33- 600 X 41- 19800 24600 4800 24.24% 41.98% WITH MARGIN WITHOUT MARGIN 24.24% al tax / PB ROPI EVA MVALEVERAGED BUY 福 130% 06:28 31-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text General aCopy B า 프 . Ej- a-Δ. : rーー 逻锂函Merge & Center. $ % , to: conditional Format . Cell Insert Delete Formsat Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard Font Alignment Number Styles Cells Edting DF205 DE DF DG DH DI DJ DK DL DM DN DO DP DQ DR 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 (4 トト STOCK DIV WITH MARGIN PURCHASE VALUE OF SHARES OWN FUNDS= BORROWED FUNDS 600 x 33 = 19800 9900 9900 INITIAL INVESTMENT = 9900 PRICE IS 33 VALUE OF INVESTMENT PAYMENT TO A BROKER WITH INTEREST- 9900(1 + 6.5%)- MY POSITION AFTER PAYMENT TO A BROKER OWN INVESTMENT= FINAL PROFIT- 600 x 33 = 19800 10544 9257 9900 -644 RATE OF RETURN ON INVESTMENT- -644/9900 -6.50% NAV HEDGE FUND ME EV PE EPS DIV-ABNORMAL APV ROSS deberk MARGIN MONEY al tax / PB ROPI EVA MVALEVERAGED BUY 福 130% 06:28 31-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text General ta copy ▼ в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. Styles ▼ ㆆ ▼ Clipboard Font Alignment Number Cells DF252 DE DF DG DH DI DJ DK DL DM DN DO DP DQ DR 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 i1 1 I STOCK DIV NAV HEDGE FUND MF | EV PE EPS DİV . ABNORMAL APV ROSS ! deberk MARGIN MONEY WITHOUT MARGIN INVESTMENT VALUE OF INVESTMENT- PROFIT = RATE OF RETURN ON INVESTMENT--9600/19800- 600 X 33- 19800 10200 9600 -48.48% 600 X 17 WITH MARGIN WITHOUT MARGIN -103.47% -48.48% al tax 、PB ROPI EVA MVALEVERAGED BUY 06:32 31-01-2019

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