Aaron

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $32 per share. She borrows $4,600 from her broker to help pay for the purchase. The interest rate on the loan is 6%.

a. What is the margin in Dée’s account when she first purchases the stock?

Margin $

b-1.

If the share price falls to $21 per share by the end of the year, what is the remaining margin in her account? (Round your answer to 2 decimal places.)

Remaining margin %

b-2. If the maintenance margin requirement is 30%, will she receive a margin call?

No

Yes

c.

What is the rate of return on her investment? (Negative value should be indicated by a minus sign.Round your answer to 2 decimal places.)

Rate of return %

I understand they make a premium, but their losses can be significant.

Need help with a CAPM equation and any help from a finance expert would be helpful.

1) Assume the Mexican peso appreciated relative to the U.S. dollar and Mexico’s inflation rate was higher than the United States’. How can this assertion be explained from the improvement perspective of productivity of Mexican industry relative to the U.S. industry?

Stock C is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 20% per year for five years (i.e. until year 6) and zero thereafter.

If the market capitalization rate is 10%, what is the price of Stock C?

(Unless stated otherwise, always assume that the next dividend comes exactly one period from now.)

Preferably, a financial analyst estimates cash flows for a project as:

cash flows after taxes.

accounting profits after taxes.

cash flows before taxes.

accounting profits before taxes.

Suppose that a project has a depreciable investment of $1,000,000 and falls under the following MACRS year 5 class depreciation schedule:

year 1: 20%; year 2: 32%; year 3: 19.2%; year 4: 11.5%; year 5: 11.5%; and year 6: 5.8%.

Calculate the depreciation tax shield for year 2 using a tax rate of 30%:

Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5.2 a share. If the current stock price is $40.2, what is the market capitalization rate?

Seven-Seas Co. just paid a dividend of $3 per share out of earnings of $5 per share. If its book value per share is $40 and its market price is $52.50 per share, calculate the required rate of return on the stock.

Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5.2 a share. If the current stock price is $40.2, what is the market capitalization rate?

An 8.7%, fifteen-year bond yields 6.7%. If the yield remains unchanged, what will be its price one year hence? Assume annual coupon payments

check all that apply

a. managers

b. board of directors

c. shareholders

check all that apply

preperation of financial statements

internal accounting

cash management

taxes

a. legal costs

b agency costs

c. bankruptcy costs

d. administrative costs

Assume that you contribute $390 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $780 per month for another 25 years. Given a 6 percent interest rate, what is the value of your retirement plan after the 40 years?