Bha You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine yourpercentage profit or loss if the stock price rises to $24 a share (ignore borrowing costs, dividends, and taxes).25%27%10%30%Click if you would like to Show Work for this question: Open Show Work

Profit percentage (loss) = Earnings / Total Investment + [50% * Earnings / Total Investment]

Answered: You purchased shares of Broussard…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You purchased 200 shares of a stock trading at $45 per share and used $6,000 of your own money and borrowed the rest. If the maintenance margin is 30%, how low can the stock go before you receive a maintenance call? Group of answer choices c. $40.55 d. $36.25 b. $33.75 a. $21.43
Suppose you want to buy 10,000 shares of Ultra Universe Company at a price of 4.00. You put up P10,000 and borrow the rest. This is the balance sheet and margin: Balance Sheet: Asset Amount (P) Liabilities Amount (P) Investments in Ultra Universe Company 40,000 Margin Loan 30,000 Account Equity 10,000 Total Assets 40,000 Total Liabilities & Equities 40,000 Margin = (Equity / Total Assets) = (10,000 / 40,000) = 25% QUESTION: Supposed that you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What would the account balance sheet look like instead?
A corporation has just paid dividend $1.000. If the dividend can grow 20% for the first three years and 10% afterwards, the fair price of the stock using 15% discount rate is close to a. $28.000 b. $28.300 c. $28.700 d. $27.700 Please answer this question ASAP, if write and upload the paper calculation really take a time, then just write the right multiple choice, Thank you
You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for $166 per share. You receive a dividend of $2.27 a share. a.What is your total dollar return? b. What are your dividend yield, capital gain yield, and total percentage return? Note: don't use chat gpt.
You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $29? (Ignore any dividends.) Select one: а. 20% b. 15% C. 6.67% d. 10%
Best Buy currently has 10 million shares outstanding and recently reported free cash flow of $50 million. During your analysis you feel Best Buy should have a price to free cash flow ratio of 20. What is the highest price you would pay for a share of Best Buy? $25 $100 $10 $50
1. You purchase 100 shares for $50 a share ($5,000), and after a yearthe price rises to $60. What will be the percentage return on yourinvestment if you bought the stock on margin and the marginrequirement was? a.25 percent b.50 percent c.75 percent 2. Repeat Problem 1 to determine the percentage return on yourinvestment but in this case suppose the price of the stock falls to$40 per share. What generalization can be inferred from youranswers to Problems 1 and 2? 3. How many years will it take for 197000 dollars to grow to 554000 dollars if it is invested in an account with a quoted annual interest rate of 8 percent with monthly compounding interest?
c. You purchased 100 shares of common stock on margin at $55 per share. Assume that the initial margin is 60%, with the maintenance margin of 35%. If the price moves to $40 per share, what would be the remaining equity margin in your account? Calculate the price at which there will be a margin call?
You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one: $12,000 $14,400 $14,800 $15,600 $12,800 Give typing answer with explanation and conclusion
If you bought 200 shares of Amazon when they issued their IPO in May 1997 for $18/share and then sold all 200 shares today for $3,284/share. What is the Cost Basis for calculating your Capital Gain and Return On Investment (ROI) O $3,600 O $3,266 O $653,200 O $656,800
Finance You've just opened a margin account with $20,000 at your local brokerage firm. You instruct your broker to purchase 500 shares of Landon Golf stock, which currently sells for $60 per share. Suppose the call money rate is 5% and your broker charges you a spread of 1.25% over this rate. You hold the stock for 6 months and sell at a price of $65 per share. The company paid a dividend of $0.25 per share the day before you sold your stock. 1) What is your total dollar return from this investment? 2) What is your effective annual rate of return?
You purchased 1,450 shares of stock in Natural Chicken Wings, Incorporated, at a price of $43.64 per share. Since you purchased the stock, you have received dividends of $113 per share. Today, you sold your stock at a price of $47.82 per share. What was your total percentage return on this investment? Multiple Choice O 10.87% 9.58% 12.98% 12.17% Help Save & Exit 13.84% SL

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