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kow [346]
2 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]2 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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A company reports the amounts below in its financial statements. Net cash flow from operating activities $37,570 Total net cash
balandron [24]

Answer:

Ratio will be 0.92

So option (A) will be the correct option

Explanation:

We have given net cash flow from operating activities = $37570

So net operating cash flow = $37570

Current liabilities at the bugging of the year = $38400

Current liabilities at the end of the year = $43200

So average current liabilities =\frac{38400+43200}{2}=$40800

We have to find the ratio of operating cash flow to current liabilities

So ratio will be =\frac{37570}{40800}=0.92

So option (A) will be the correct option

3 0
3 years ago
The average annual cost of tuition at Dr.B U is normally distributed with a mean of $18,695 and a standard deviation of $2,163.
nadezda [96]

Answer:

98.10% of the tuiton cost will be lower than what the undergratuate stdent told their parents

Explanation:

We have to normilize the tuiton standard deviation adn then, look into the table for the accumulated probabiliti at their Z value:

P_z = \frac{X - \mu}{\sigma} \\\\P_z = \frac{23,185-19,695}{2,163}

Pz = 1,613499768839575

We look into the able and the probability is 0.981044728 that is 98.10% of the tuiton cost will be lower than what the undergratuate stdent told their parents

5 0
3 years ago
Which of the following gives the number of protons, electrons, and neutrons for a neutral Phosphorus atom? * 25 points Captionle
murzikaleks [220]

Protons=15, neutrons= 16, electrons=15

3 0
3 years ago
Plz plz plz plz help me !!!!!!!
monitta

3. I would want the elected representative to support this. If there is a tax on clothing coming in then it would be more expensive and less people will buy it.

6.  I wouldn't want the elected representative to support this. This would eliminate entry barriers and price controls, which would most likely make the trucking company that my factory uses to transport prices' go up.

I don't know the rest

6 0
2 years ago
Amazon Corporation has preferred stock outstanding that pays a $11.45 annual dividend. It price is $147. What is the required ra
Kobotan [32]

Answer:

7.79%

Explanation:

Calculation to determine the required rate of return (yield) on the preferred stock

Using this formula

Cost of preferred stock=Annual Dividend per share/Current price of preferred stock

Let plug in the formula

Cost of preferred stock=$11.45/$147

Cost of preferred stock=0.0779*100

Cost of preferred stock=7.79%

Therefore the required rate of return (yield) on the preferred stock is 7.79%

4 0
2 years ago
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