Question

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.

Homework Answers

Answer #1

Answer is as follows:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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 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, 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.
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
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?
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?
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 400 shares of stock on margin at $28 per share. If the margin...
Lisa Lasher buys 400 shares of stock on margin at $28 per share. If the margin requirement is 50 percent, how much must the stock rise for her to realize a 10-percent return on her invested funds?
40) You purchased 300 shares of a non-dividend paying stock for $25.2 a share 6 months...
40) You purchased 300 shares of a non-dividend paying stock for $25.2 a share 6 months ago. Today, you sold those shares for $36.1 a share. What was your percentage annualized rate of return on this investment? 41) You purchased 300 shares of SLG, Inc. stock at a price of $43.3 a share. You then purchased put options on your shares with a strike price of $40.00 and an option premium of $1.8. At expiration, the stock was selling for...