Question

Problem 4-05 A year ago, Kim Altman purchased 180 shares of BLK, Inc. for $24.50 on...

Problem 4-05

A year ago, Kim Altman purchased 180 shares of BLK, Inc. for $24.50 on margin. At that time the margin requirement was 50 percent. If the interest rate on borrowed funds was 10 percent and she sold the stock for $32.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A year ago, Kim Altman purchased 300 shares of BLK, Inc. for $36.00 on margin. At...
A year ago, Kim Altman purchased 300 shares of BLK, Inc. for $36.00 on margin. At that time the margin requirement was 50 percent. If the interest rate on borrowed funds was 6 percent and she sold the stock for $44.50, what is the percentage return on the funds she invested in the stock?
A year ago, Kim Altman purchased 210 shares of BLK, Inc. for $40.00 on margin. At...
A year ago, Kim Altman purchased 210 shares of BLK, Inc. for $40.00 on margin. At that time the margin requirement was 40 percent. If the interest rate on borrowed funds was 12 percent and she sold the stock for $45.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places.
A year ago, Kim Altman purchased 150 shares of BLK, Inc. for $37.00 on margin. At...
A year ago, Kim Altman purchased 150 shares of BLK, Inc. for $37.00 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 11 percent and she sold the stock for $46.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places.
A year ago, Kim Altman purchased 300 shares of BLK, Inc. for $27.50 on margin. At...
A year ago, Kim Altman purchased 300 shares of BLK, Inc. for $27.50 on margin. At that time the margin requirement was 40 percent. If the interest rate on borrowed funds was 8 percent and she sold the stock for $38.50, what is the percentage return on the funds she invested in the stock? Round your answer to two decimal places.
A year ago, John Chea purchased 300 shares of Supervalue stock for $25.50 on margin. At...
A year ago, John Chea purchased 300 shares of Supervalue stock for $25.50 on margin. At that time the margin requirement was 40 percent. If the interest rate on borrowed funds was 9 percent and he sold the stock for $34, what is the percentage return on the funds he invested in the stock?
An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased...
An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at which time the investor sold the stock. If the margin requirement were 60 percent and the interest rate on borrowed funds were 7 percent, what would be the percentage earned on the investor's funds (excluding commissions)? What would have been the return if the investor had not bought the stock on margin?
Lisa Lasher buys 420 shares of stock on margin at $25 per share. If the margin...
Lisa Lasher buys 420 shares of stock on margin at $25 per share. If the margin requirement is 40 percent, how much must the stock rise for her to realize a 30-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent.
Three months ago, you purchased 100 shares of stock on margin. The initial margin requirement on...
Three months ago, you purchased 100 shares of stock on margin. The initial margin requirement on your account is 70 percent and the maintenance margin is 40 percent. The call money rate is 4.2%/year and you pay 2.0% above that rate. The purchase price was $22 per share. Today, you sold these shares for $25.00 each. What is your annualized rate of return?
1. Louis purchased 300 shares of stock on margin for $22.15 a share and sold the...
1. Louis purchased 300 shares of stock on margin for $22.15 a share and sold the shares eleven months later for $24.50 a share. The initial margin requirement was 75 percent and the maintenance margin was 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return? Multiple Choice 8.45 percent 9.88 percent 10.76 percent 7.05 percent 11.56 percent 2.   You purchased six put option contracts with a...
Barbara buys 140 shares of DEM at $31.00 a share and 250 shares of GOP at...
Barbara buys 140 shares of DEM at $31.00 a share and 250 shares of GOP at $43.00 a share. She buys on margin and the broker charges interest of 5 percent on the loan. If the margin requirement is 47 percent, what is the maximum amount she can borrow? If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? If after a year she sells DEM for $26.00...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT