Question: Problem 4 - 0 5 A year ago, Kim Altman purchased 1 8 0 shares of BLK , Inc. for $ 3 8 . 0

Problem 4-05
A year ago, Kim Altman purchased 180 shares of BLK, Inc. for $38.00 on margin. At that time the margin requirement was 30 percent. If the interest rate on borrowed
funds was 10 percent and she sold the stock for $46.00, 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Virginia Semiconductor is a leading manufacturer of prime silicon substrates. The company, situated in Fredericksburg, Virginia, was founded in 1978 by Dr. Thomas G. Digges and his brother, Robert....

Q:

1) You purchase 190 shares for $50 a share ($9,500), and after a year the price rises to $60. Calculate the percentage return on your investment if you bought the stock on margin and the margin...

Q:

1.You purchase 70 shares for $70 a share ($4,900), and after a year the price rises to $80. Calculate the percentage return on your investment if you bought the stock on margin and the margin...

Q:

ms 1. You purchase 100 shares for $50 a share ($5,000), and after a year the price rises to $60. What will be the percentage return on your investment if you bought the stock on margin and the margin...

Q:

A year ago, Kim Altman purchased 130 shares of BLK, Inc. for $35.50 on margin. At that time the margin requirement was 40 percent. If the interest rate on borrowed funds was 5 percent and she sold...

Q:

A year ago, Kim Altman purchased 240 shares of BLK, Inc. for $25.50 on margin. At that time the margin requirement was 60 percent. If the interest rate on borrowed funds was 5 percent and she sold...

Q:

Chapter 4 EOC Problems ent: Assignment 3 : Chapter 4 EOC Problems Assignment Score: 2 5 . 0 0 % Submit Assignment for Grading Question 5 of 8 Check My Work eBook Problem 4 - 0 5 A year ago, Kim...

Q:

Problem 4-01 You purchase 70 shares for $70 a share (54,900), and in a year the price rises to 580. Calculate the percentage return on your investment you bought the stock angin and the margin...

Q:

19.03% is NOT the correct answer. Problem 4-05 4 Question 19 of 20D Check My Work (No more tries available) eBook Problem 4-05 A year ago, Kim Altman purchased 180 shares of BLK, Inc. for $26.00 on...

Q:

1. A sophisticated investor, B. Graham, sold 750 shares short of Amwell, Inc. at $56 a share. The price of the stock subsequently fell to $42 before rising to $60 at which time Graham covered the...

Q:

Attempts Average / 1 5. Problem 4-05 eBook Problem 4-05 A year ago, Kim Altman purchased 270 shares of BLK, Inc. for $31.00 on margin. At that time the margin requirement was 40 percent. If the...

Q:

1 : Compare and contrast the Business Model test and the Solely Payments of Principal and Interest (SPPI) test used in International Financial Reporting Standard (IFRS) 9 2 : Explain the IFRS 9...

Q:

Gaurav's Restaurant is analyzing an increase in its labour cost. You have been given the following information on the average hourly rate for its front-of-house positions and an excerpt from its...

Q:

3. Prepare a basic will for yourself, using the guidelines presented in the text; also prepare your brief letter of last instructions.

Q:

when formating a montonic ion, K will lose one electron while S will gain two electrons. What will the formula for potassium sulfide be ?

Q:

years.

Q:

Like the Beveridge model, there are no real cost controls in the Bismarck model, therefore long queues are a problem.

Q:

Patients in Bismarck model countries are able to choose which health care provider they see.