Allan purchased 700 shares of stock on margin for $16.50 a share and sold the shares twelve months later for $17.80 a share. The initial margin requirement was 70 percent and the maintenance margin was 40 percent. The interest rate on the margin loan was 6.7 percent. He received no dividend income. What was his rate of return?
A stock has an expected return of 13.55 percent and a beta o…
A stock has an expected return of 13.55 percent and a beta of 1.7, and the expected return on the market is 9.00 percent. What must the risk-free rate be?
Assume you buy 300 shares of stock at $7.60 per share on mar…
Assume you buy 300 shares of stock at $7.60 per share on margin (41 percent). How much would you need to contribute to initiate this position?
Suppose a stock had an initial price of $56 per share, paid…
Suppose a stock had an initial price of $56 per share, paid a dividend of $2.25 per share during the year, and had an ending share price of $70. Compute the percentage total return.
In a defined benefit pension plan, the ________ bears all of…
In a defined benefit pension plan, the ________ bears all of the fund’s investment performance risk.I: employerII: employee
Assume the following financial data: Total earnings (after-t…
Assume the following financial data: Total earnings (after-tax): $78,900Dividends per share: $2.70Stock price: $43.00Shares outstanding: 36,000Find the firm’s P/E ratio.
Given the following financial data: Net income / Sales = 12…
Given the following financial data: Net income / Sales = 12 percent; Sales / Total assets = 2.9 times; Debt / Total assets = 55 percent; compute return on equity.
A stock has produced returns of 24 percent, 15 percent, –43…
A stock has produced returns of 24 percent, 15 percent, –43 percent, and 38 percent over the past four years, respectively. What is the geometric average return?
You are the chief financial officer of Davidson Industries….
You are the chief financial officer of Davidson Industries. On multiple occasions, you have engaged in insider trading but have never been able to earn any abnormal returns. Which form of market efficiency most likely exists given your situation?
Which one of the following correctly identifies the phenomen…
Which one of the following correctly identifies the phenomenon that states that one month has the greatest tendency for small stocks to earn large returns?