You buy 100 shares of Apple common stock at a price of $60.98. One quarter later,...

You buy 100 shares of Apple common stock at a price of $60.98. One quarter later, you collect a dividend of $1.73 per share and sell your stock for $67.44 per share. What is the rate of return on your investment? (You may ignore commissions and taxes.)

Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative, then include a minus sign.

Expert Solution

Selling price of stock - $67.44

Less:Stock Price at the time of buy - $60.98

_______

Increment in Stock $6.46

Add Dividend Received $1.73

______

Total return $8.19

Rate of Return of Investment - $8.19/$60.98= 13.43 %

=========

jeff jeffy answered 1 year ago

You buy 100 shares of Apple common stock at a price of $55.75. One quarter later,...

You buy 100 shares of Apple common stock at a price of $55.75. One quarter later, you collect a dividend of $1.51 per share and sell your stock for $66.38 per share. What is the rate of return on your investment? (You may ignore commissions and taxes.) Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol. If the return is negative, then include a...

a. Assume that you would like to buy 100 shares of a stock that is currently...

a. Assume that you would like to buy 100 shares of a stock that is currently priced at $ 70. The initial margin is 75% and maintenance margin is 35%. How much would the total purchase amount to in dollars. How much in total cash of your own do you need in dollars in this example? How much will you be able to borrow in dollars in this example? b. Show your total dollar amount of investment and your results...

Apple Corporation owns 60,000 shares of common stock out of the 100,000 shares outstanding of common...

Apple Corporation owns 60,000 shares of common stock out of the 100,000 shares outstanding of common stock of Orange Corporation. On 1/1/2012, using the equity method, Apple recorded its investment in Orange on its book at $480,000. The book value of net assets of Orange Corporation on 1/1/2012 was $800,000. If on 1/2/2012 Orange Corporation repurchased 20,000 shares from outsiders at $6 a share, what adjustment would be needed for Apple’s “Investment in Orange” account after the repurchase? $30,000 increase...

Apple recently had a stock split, so I decided to buy a few shares of Apple...

Apple recently had a stock split, so I decided to buy a few shares of Apple stock. As of today, Apple's beta is 1.28, the treasury yield is around 1.42%, and the market risk premium is 5.6% (Rudden, 2020). What is my expected return on Apple stock? Please explain your work. Economic State Probability Sony McDonald's Recession 50% 5% 6.00% Normal 30% 7.69% 5.28% Expansion 20% 15% 5.80%

You purchased 100 shares of General Motors stock at a price of $101.90 one year ago....

You purchased 100 shares of General Motors stock at a price of $101.90 one year ago. You sold all stocks today for $94.51. During the year, the stock paid dividends of $5.62 per share. What is your holding period return? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

You decide to buy 700 shares of stock at a price of $74 and aninitial...

You decide to buy 700 shares of stock at a price of $74 and an initial margin of 50 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 35 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Input the amount as a positive value.)

Part A: You buy 500 shares of stock at a price of $94 and an initial...

Part A: You buy 500 shares of stock at a price of $94 and an initial margin of 50 percent. If the maintenance margin is 40 percent, at what price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Margin Call Price: PART B You purchase 650 shares of 2nd Chance Co. stock on margin at a price of $45. Your broker requires you to deposit $17,500. a. Suppose you sell...

Martin has $100 and would like to buy shares of ABC stock. The current price ABC...

Martin has $100 and would like to buy shares of ABC stock. The current price ABC stock is $100 per share and he believes that it will go up by 5% in a month. He is considering buying one-month call options on ABC stock. A one-month call option on ABC stock with strike price being $102 costs $2. What is the profit for Martin should the share price of ABC stock do go up by 5% in a month? (5...

Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of...

Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of 50%. You also buy 200 shares of stock ABC at $50 a share with an 60% margin. You are very sure that, in six month, the price of the first stock would be $15 because you got insider information, but you are not so sure about the price of the second stock. Suppose you want to achieve a 20% return from your portfolio, then...

Question 1 a. You sell short 100 shares of stock at a price of $100 per...

Question 1 a. You sell short 100 shares of stock at a price of $100 per share with an initial margin of 65 percent and maintenance margin of 25 percent. Show this in a “T” balance sheet format, and calculate your margin. Price = 100 Credit for short sale Cash Deposit = Liability: Market Value of short sale Equity = Total Assets = Liabilities + Equity= b. Margin = c. If the price falls to $90 per share, show this...

Question