Jason Williams purchased 500 shares of a company at $32 per share. The stock was bought...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jason Williams purchased 500 shares of a company at $32 per share. The stock was bought on 75 percent margin. One month later, Williams had to pay interest on the amount borrowed at a rate of 2 percent per month. At that time, Williams received a dividend of $0.50 per share. Immediately after that he sold the shares at $28 per share. He paid commissions of $10 on the purchase and $10 on the sale of the stock. What was the rate of the return on this investment for the one-month period? Jason Williams purchased 500 shares of a company at $32 per share. The stock was bought on 75 percent margin. One month later, Williams had to pay interest on the amount borrowed at a rate of 2 percent per month. At that time, Williams received a dividend of $0.50 per share. Immediately after that he sold the shares at $28 per share. He paid commissions of $10 on the purchase and $10 on the sale of the stock. What was the rate of the return on this investment for the one-month period?
Expert Answer:
Answer rating: 100% (QA)
Total cost of the purchase 16000 500 32 Equity invested 12000 075 16000 Amount ... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
Posted Date:
Students also viewed these finance questions
-
On April 10, 2013, Amelia, Inc., purchased 500 shares of its own common stock in the market for $24 per share. On September 28, 2013, the company sold 300 of these shares in the open market at a...
-
An investor purchases 1000 shares of a company at Ghs20 per share using his own equity of Ghs 10,000 and borrowing the rest from his broker at 20% per annum. If all the shares were sold one year...
-
Rochester Enterprises Purchased 500 shares of Newark Corporation for $15 per share on June 15, 2011, when Newark had approximately 10,000 equity shares outstanding. Rochester held the investment...
-
A deposit of $4000 is made into an account that earns 11% annual simple interest. How much additional money must be deposited into an account that pays 14% annual simple interest so that the total...
-
Transposable elements cause mutations when inserted within a gene. These elements disrupt the continuity of a gene. Introns also disrupt the continuity of a gene, yet the gene is still functional....
-
Find the components of the vectors u, v, u + v, and u - v, where u and v are as shown in Figure 1 .23. 60 -1 30
-
Can a duty to care be established by statute or contract? Discuss your answer.
-
(Retained Earnings Statement, Prior Period Adjustment) Below is the retained earnings account for the year 2004 for LeClair Corp. (a) Prepare a corrected retained earnings statement. LeClair Corp....
-
A firm's total annual dividend payout is $250 million. Its stock price is $45 per share and it has 12,00,000 shares outstanding. The firm earned $400 million in Net Income. What is the dividend...
-
The book balance in the checking account of Lyles Salon as of November 30 is $3,282.95. The bank statement shows an ending balance of $2,127.00. By examining last months bank reconciliation,...
-
Draw ER Diagram for a following case study? Requirements: Confirm to 3rd Normal Form Should be aware there are a number of disjoint subtype entities Valid supertype and subtype entities and hierarchy...
-
An amount is transferred from the deferred tax account to profit or loss. How does this affect tax payable? The company has more tax to pay. The company has less tax to pay. The company will pay less...
-
Which of these two statements do you believe is truer of today's employees? Why? The idea of work/life balance suggests that while employees are busy earning a living, they are also busy living a...
-
Pretend you have the opportunity to craft your ideal working conditions. 1. How do you envision your ideal work/life balance? 2. How would this balance improve your role as an Employee? 3. How would...
-
Utilizing the business or mock scenario you chose for Assignment 1, you'll now apply the knowledge you've gained about Google Ads to create a mock campaign on the platform. Instructions: Goals:...
-
The Evolution of Advertising How and why it started The progressions and changes through the years How and when digital display advertising became relevant What effect will advancements like...
-
What is NOT an element of integrity that Strom-Gottfried presented in our course reading? Refraining from dishonesty or lying, presenting vague or misleading information, false advertising, or...
-
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. $ 57.30 per unit $ 10.30 per unit $ 7.80 per...
-
Creative Lighting, Inc., makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company's fiscal year, $56,520...
-
During a year, Teri's monthly sales compensation ranged between $12,000 and $16,000 per month and units sold ranged between 1,600 and 2,400 units for those same months. Required: Use the high-low...
-
GrandSlam, Inc., incurred the following costs during March: Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,340 Direct labor . . . . . . . . . . . . . . . ....
-
The \(x\) component of the velocity of a car changes from \(-10 \mathrm{~m} / \mathrm{s}\) to \(-2.0 \mathrm{~m} / \mathrm{s}\) in \(10 \mathrm{~s}\). (a) Is the car traveling in the positive or...
-
The day after the incident described in Problem 44, the instructor finds herself in the same situation. This time, she tries a harder physics exercise. She keeps running at a constant \(6.0...
-
(a) A car is speeding up in the negative \(x\) direction. In what direction do \(\vec{a}\) and \(\vec{v}\) point? (b) To which of the four graphs in Figures 3 . 2 and 3 . 3 does the situation...
Study smarter with the SolutionInn App