You purchase 100 shares of stock for $60 a share. The stock pays a $3 per...
Suppose that you sell short 1000 shares of Xtel, currently selling for $60 per share, and give your broker $45,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $66; (ii) $60; (iii) $54? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values...
elect then and drag to the Favotes Barfoder. Otport trom anoth e r importantes 7 and 11 HW Help You purchase 100 shares of stock for $50 a share. The stock pays a 2 perse dividendown a. What is the rate of return on your investment the end of year stock price is $40.09550 5 5 Levence certain to enter"0" wherever required. Enter your answers as a whole percent and be Stock Phce Rate of Hefur b. What is your...
Suppose you purchase 700 shares of stock at $52 per share with an initial cash investment of $18,200. 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 $60. Suppose instead you had simply purchased $18,200 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
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...
Suppose that you sell short 200 shares of Xtel, currently selling for $125 per share, and give your broker $20,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: $135, (W) $125; (1) $120? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should...
Suppose that you sell short 400 shares of Xtel, currently selling for $50 per share, and give your broker $8,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $54; (ii) $50; (iii) $44? Assume that Xtel pays no dividends. (Leave no cells blank - be certain to enter "O" wherever required. Negative values...
Suppose you purchase 500 shares of stock at $48 per share with an initial cash investment of $8,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. a. Calculate your return on investment one year later if the share price is $56. Suppose instead you had simply purchased $8,000 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers...
A stock is selling today for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $63. a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $54. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by...
Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment of $33,300. 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 $82. Suppose instead you had simply purchased $33,300 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter...
Problem 10-22 Calculating Returns [LO 2, 3] Consider the following table for an eight-year period: YearT-bill returnInflation 17.32%8.68% 28.19 12.31 35.90 6.91 45.22 4.89 55.48 6.67 67.79 8.99 710.59 13.26 812.25 12.49 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills % Average annual inflation...