Chapter 12 Study Guide(1) (1)- Word Sign in -0 File Insert Design Layout References Mailings Review View Help Tell me what you want to do Home Cut Copy Fonmat Painter Share Arial (Body) 111 . AA, Aa- :-.:-.. T AaBbCct| AaBbCct AaBbC AaBbCo] fat AaBbCc AaBbCol I AaBbCol . Replace Paste :-. 11. Normal TNo Spac Heading 1 Hending 2 Title Subtitle Subtle Erm Emphasis ; Select Clipboard Font Paragraph Styles Editing 16. Maggie Hawthorne, a private investor, just purchased a stock costing $33 on margin, paying $23 and borrowing the remainder from a brokerage firm at 15 percent annual interest. The stock pays an annual dividend of $2 If Ms. Hawthorne sells the stock after one year at a price of $50, what is her return 17. Maggie Hawthorne, a private investor, just purchased a stock costing $33 on margin, paying $23 and borrowing the remainder from a brokerage firm at 15 percent annual interest. The stock pays an annual dividend of $2. If Maggie Hawthome had not used any borrowed funds when purchasing the stock for $33, her return after one year would be percent 18. Kevin Mostner, a private investor, would like to purchase a stock priced at $70. The stock is not expected to pay any dividends in the coming year. Mr. Mostner can either put up the entire amount and purchase the stock or borrow $35 from his brokerage firm at an annual interest rate of 12 percent and put up the remainder. Mr. Mostnerthinks he can sell the stock for $100 after one year If Mr. Mostner does not borrow any money from his brokerage firm, what is the estimated return on the stock? 19. Kevin Mostner a private investor, would like to purchase a stock priced at $70. The stock is not expected to pay any dividends in the coming year. Mr. Mostner can either put up the entire amount and purchase the stock or borrow $35 from his brokerage firm at an annual interest rate of 12 percent and put up the remainder. Mr. Mostner thinks he can sell the stock for $100 after one year If Mr. Mostner borrows from his brokerage firm, his estimated return on the stock would be percent. 20. Maziano Co. stock is quoted by a broker as bid $21.20, ask $21.40. The bid-ask spread is percent Page 2 of4 1019 words E + 100% 2-44 PM O Type here to search 68% 12/3/2017