Answer: 80%
Explanation:
If the margin requirement was 25% then the amount of cash you invested is;
= Total value * margin requirement
= 5,000 * 25%
= $1,250
The price increased to $60 and now you have $6,000.
The return is;
= (New Price - Old Price) / Invested amount
= (6,000 - 5,000) / 1,250
= 80%
I was going to say it's B, but I can also see A being the right answer.
The required rate of return on its preferred stock is found by using PW = D/R.
<u>Given Information</u>
Dividend per year = $2
Stock price = $20
Tax rate = 21%
Required rate of return (R) = ?
- The formula for use to derive the Required rate of return includes PV = D/R, where PW means Present worth, D = Dividend per year and R means Required rate of return.
PV = D/R
$20 = $2 / R
$20 * R = $2
R = $2 / $20
R = 0.1
R = 10%
Therefore,, the required rate of return on the preferred stock is 10%.
In conclusion, the required rate of return on its preferred stock is found by using PW = D/R.
See similar solution here
<em>brainly.com/question/17322679</em>
Answer:1.B.2.A,3.C,4.C,5.D i hope these are the answers
Explanation: