Suppose you purchase 1,350 shares of stock at $36 per share with an initial cash investment...

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Finance

Suppose you purchase 1,350 shares of stock at $36 per share withan initial cash investment of $24,300. The call money rate is 5percent and you are charged a 1.5 percent premium over this rate.Ignore dividends.

a. Calculate your return on investment one yearlater if the share price is $44. Suppose instead you had simplypurchased $24,300 of stock with no margin. What would your rate ofreturn have been now? (Do not round intermediatecalculations. Enter your answers as a percent rounded to 2 decimalplaces.)

b. Calculate your return on investment one yearlater if the share price is $36. Suppose instead you had simplypurchased $24,300 of stock with no margin. What would your rate ofreturn have been now? (A negative value should be indicatedby a minus sign. Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places.)

c. Calculate your return on investment one yearlater if the share price is $20. Suppose instead you had simplypurchased $24,300 of stock with no margin. What would your rate ofreturn have been now? (A negative value should be indicatedby a minus sign. Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places.)

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Suppose you purchase 1,350 shares of stock at $36 per share withan initial cash investment of $24,300. The call money rate is 5percent and you are charged a 1.5 percent premium over this rate.Ignore dividends.a. Calculate your return on investment one yearlater if the share price is $44. Suppose instead you had simplypurchased $24,300 of stock with no margin. What would your rate ofreturn have been now? (Do not round intermediatecalculations. Enter your answers as a percent rounded to 2 decimalplaces.)b. Calculate your return on investment one yearlater if the share price is $36. Suppose instead you had simplypurchased $24,300 of stock with no margin. What would your rate ofreturn have been now? (A negative value should be indicatedby a minus sign. Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places.)c. Calculate your return on investment one yearlater if the share price is $20. Suppose instead you had simplypurchased $24,300 of stock with no margin. What would your rate ofreturn have been now? (A negative value should be indicatedby a minus sign. Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places.)

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