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hodyreva [135]
3 years ago
14

ou are bullish on Telecom stock. The current market price is $30 per share, and you have $3,000 of your own to invest. You borro

w an additional $3,000 from your broker at an interest rate of 3.5% per year and invest $6,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 5% during the next year? (Ignore the expected dividend.)
Business
1 answer:
Scorpion4ik [409]3 years ago
7 0

Answer:

The rate of return = 6.5%

Explanation:

Initial investment = $6,000

Stock price = $30

Number of shares = $6,000/$30 = 200

The share value increases by 5%

Increase in investment = $6,000 * 105% = 6,300

Increase in investment = $6,300 - $6,000

Increase in investment = $300

Interest paid = $3,000 * 3.5% = $105

The rate of return = ($300 - $105)/$3,000

The rate of return = $195 / $3,000

The rate of return = 0.065

The rate of return = 6.5%

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Answer:

Objective Theory

Explanation:

The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.

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3 years ago
Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec
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Answer:

b. $290,000

Explanation:

The computation of the cash flows from operating activities to be reported on the statement of cash flows is shown below:

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Net income reported = $280,000

And, the decrease in account receivable is $10,000 ($70,000 - $80,000)

So, the cash flow from operating activities

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The decrease in account receivable implies that more cash is come so it would be added and the same is shown above

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2 years ago
You see a television commercial for a product you may want to buy, and there is a telephone number you must call to place an ord
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Analyze how taxes or emissions standards could reduce the economic inefficiency that arises in a competitive market with a negat
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Let's analyze in the case of manufacturer's emission that cause polution

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Functions of Financial Markets. Look back at Section 2.3 and then answer the following questions: (LO2-3) a. The price of Yum! B
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Answer:

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3 years ago
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