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kow [346]
3 years ago
15

You are bullish on telecom stock. the current market price is $110 per share, and you have $22,000 of your own to invest. you bo

rrow an additional $22,000 from your broker at an interest rate of 6.6% per year and invest $44,000 in the stock.
a. what will be your rate of return if the price of telecom stock goes up by 8% during the next year? (ignore the expected dividend.)
Business
1 answer:
deff fn [24]3 years ago
5 0

Answer:

9.4%

Explanation:

Initial investment=$22,000+$22,000=$44,000

number of shares bought=$44,000/$110(the investor paid $55 out of every $110)

number of shares bought=400

Increase in share in one year=$110*8%=$8.80

loan interest on each share=$55*6.6%=$3.63

rate of return=(increase in share price-loan interest)/initial amount invested

rate of return=($8.80-$3.63)/$55

rate of return=9.4%

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Natalie is using Monster and CareerBuilder in her job search. These sites are examples of ________.
lorasvet [3.4K]

Answer:

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Explanation:

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3 years ago
During 2020, Lincoln Company hires seven individuals who are certified to be members of a qualifying targeted group. Each employ
Montano1993 [528]

Answer:

$16,800

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7 0
2 years ago
United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____
Hunter-Best [27]

Answer:

B, net income for the year was $1,200,000, average assets were $20 million, ROI was 6%

Explanation:

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(2 ÷ 100) × $60,000,000

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3 years ago
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