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 borrow 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.)

Answers

Answer 1

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%


Related Questions

Daube Company's operations for the month of July are summarized as follows: Provided $8,600 of services on account. Received $3,800 cash from customers for services provided in July. Received $1,100 cash for services to be provided in August. Received $5,100 cash from customers on account for services provided in June. Paid June’s warehouse rental bill on account in the amount of $1,200. Received July’s warehouse rental bill of $1,300; set it aside to be recorded at a later date. Required: Determine the net income for July using the cash basis of accounting. Determine the net income for July using the accrual basis of accounting.

Answers

Answer: See explanation

Explanation:

a. Determine the net income for July using the cash basis of accounting.

Revenue = $3800 + $1100 + $5100 = $10000

Less: Expense = $1200

Net Income = $10000 - $1200 = $8800

b. Determine the net income for July using the accrual basis of accounting.

Revenue = $8600 + $3800 = $12400

Less: Expense = $1300

Net income = $12400 - $1300 = $11100

What can affect whether banks or other financial insututions are
interested in offering an individual a loan?
A. Financial knowledge
B. Personal credit
C. Financial experience
D. Business credit

Answers

Answer:

B. Personal credit if it is a personal loan

D. If the individual applies to start a business

Explanation:

Typically Financial institutions extend loans based on "credit worthiness" (or credit score) of the individual and can be extended based on whether the individual has an asset to secure the loan. Lack of an asset can have a negative result (dependent upon the amount requested) if the loan request is for a large amount of money.

If it is an individual loan then it would be B, your personal credit

Corporate executives often object to the use of open-source software because it lacks formal technical support, even though information and solutions regarding the software are usually readily available online.


A. True

B. False

Answers

Answer:

A. True

Explanation:

When the open source software used by the corporate executives so it would be lead to the lacking of technical support i.e. formal also the information and its solutions would be available online

So the given statement is true as the open source software deals with the source code that should be released in a license where the copyright holder would granted the users to have the right to use the same

what is true about taxes?

a. most citizens want to pay the highest amount possible?
b. Taxes benefit the government, but they do not benefit the citizens.
c. Traces benefit the citizens, but they do not benefit the government.
d. The tax money comes out of the citizens income and overall wealth​

Answers

the answer is b because that’s how the government get paid.

Answer: D) the tax money comes out of the citizen’s earned income and overall wealth.

Explanation:

Just took the test.

Select all that apply.
Which of the following would be considered full-time work?
hours
33 hours
9 G 8C it
45 hours
51 hours

Answers

Pretty sure a full time job is 45 hours
Answer:

45 hours;

51 hours;

40 hours.

The answer choices given, as listed above, would be considered "full-time work

Hope this helps (:

Which method of backing up digital photographs involves physical storage of files?

A: online backup
B: fireproof safe
C: internal hard drive
D: external hard drive

Answers

Answer:

D, external hard drive :)

Explanation:

Hope this helps :D

In this, external hard drive method of backing up digital photographs involves physical storage of files. The correct option is (D).

What do you mean by the external hard drive?

An external hard drive is a gadget that you plug into a computer port as opposed to an internal disc, which is securely tucked away inside your computer. You can keep your files in greater storage with an external hard drive.

A computer's outside is connected to an external hard disc. Computer backups and data transmission between PCs are both facilitated by external hard drives.

You can unplug an external hard disc from your computer. Depending on their size, they can be used to backup individual files or an entire computer.

Therefore, in this, external hard drive method of backing up digital photographs involves physical storage of files.

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what is cooperative skill​

Answers

a co-operative skill is the understanding of how to work effectively with other people on an equal basis towards commonly held aims and objectives

With Wi-Fi, _____________ are used to transport the Internet signal between the computer and a router.

Answers

Answer:

A computer's wireless adapter translates data into a radio signal and transmits it using an antenna.

Explanation:

Answer:

Radio waves

Explanation:

do this document and I will give you 100 points send it back to me completed all the directions are on here.

Answers

Answer:

I like chicken

Explanation:

What are 2 pros and 2 cons of working minimum wage

Plz help

Answers

Answer:

They raise prices or reduce the number of hours worked. Worker morale, productivity, and consumer spending all increase. But the pros only outweigh the cons if the minimum wage isn't too high. Wages cannot be so high that they reduce a company's ability to keep labor costs low during a recession.

Explanation:

Understanding opportunity cost

Opportunity cost is what must be ____ in order to ____ something else.

Opportunity cost forces consumers and producers to make ___

Answers

Given up
Gain
Choices

Answer:

Opportunity cost is what must be

✔ given up

in order to

✔ gain

something else.

Opportunity cost forces consumers and producers to make

✔ choices

.

Explanation:

which method is approved by income tax authorities for charging depreciation​

Answers

Answer:

The straight-line method

Explanation:

The simplest and most commonly used way to calculate depreciation under generally accepted accounting principles.

Which statement best describes the current price for the good shown in this

Answers

Answer:

The Current price will result in a low supply for the good.

Explanation:

John works as a website designer and for a fee will perform tasks that help clients create or redesign their websites. In other words, John is providing what for each client?
A) a deficit

B) an export

C) an import

D) a service

Answers

The answer is b hope this helps

3) Bill weighs 220 pounds and is losing 4 pounds each month. Phil weigh 250 pounds and is losing 10 pounds each month. How many months, m, will it take for Bill to weigh the same as Phil? How much will they weigh?

Answers

5 months and 200 pounds

4x5 = 20

220-20

200

10x5 = 50

250-50

200

Pete, a broker, advised Ollie to invest in Rocky Road Inc. When the share price of Rocky’s stock decreases, Ollie accuses Peter of fraud, claiming reliance on Pete’s advice. The reliance that gives rise to liability for fraud requires ____.

Answers

Answer:

Misrepresentation of a fact knowing it is false.

Explanation:

Fraud is defined as an intentional act of deception by an individual to unlawfully gain the property of another person.

For fraud to be committed facts must be misrepresented intentionally with the aim of deception.

In the given scenario Pete advised Ollie to invest in Rocky Road Inc. and the share price of Rocky’s stock decreases, Ollie accuses Peter of fraud.

If Ollie can show that Pete knew the price of the shares would fall, he can now accuse him of fraud.


Exercises: Decide for the following if they are Economic resource
A Undiscovered gold in remote area.
B. Fertile agricultural land in Port Moresby.
Explain why for A and B​

Answers

Answer:

B

Explanation:

Fertile agricultural land can be farmed or sold, either way providing economic resources

You work for Greene-Mann Landscaping Company. A prospective client sends you the e-mail
below:
I would like to plant a tree in my backyard. We like to eat outside, and in the summer, the hot sun
burns down on our deck at dinnertime. I would like a tree that will be quick and easy to grow.
Based on the document shown, what would you recommend for this client?
A. An evergreen tree planted on the windy side of the house
B. An evergreen tree planted on the south side of the house
C. A deciduous tree planted on the windy side of the house
D. A deciduous tree planted on the south side of the house
E. A deciduous tree planted on the west side of the house

Answers

Answer:

The answer for this is E.

Based on the document shown, A deciduous tree planted on the west side of the house is recommended. Option E is an appropriate response.

What is a deciduous tree?

At the end of the growing season, deciduous trees shed their broad, flat leaves. It differs from most evergreen trees (which typically retain needle foliage throughout the seasons) and coniferous trees (usually evergreens that produce cones). There are, however, deciduous conifer trees like golden larch and dawn redwood. You can also tell if a tree is deciduous by its round shape, as opposed to an evergreen's upside-down cone shape.

During the hotter months, deciduous trees provide shade and block heat from the sun, and by dropping their leaves in the fall, they admit sunlight during the colder months.

Hence, option E is an appropriate response.

To learn more about deciduous tree

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A fee collected by a real estate agent upon the sale of a property is

Answers

Real estate commission fee

Charlize is monitoring market indicators in a particular area for her client who wants to buy an oceanfront home. Which market indicator will tell her how much prices have fluctuated in the area over the past two years?

Answers

Answer:

Price levels

Explanation:

Price level is an indicator that is obtained by getting the average price of goods that are produced within an economy or an industry.

When prices rise it indicates that demand for a good is on the rise and eventually an inflation may result. When price falls demand has reduced and deflation may result.

In the given scenario price level is the best indicator to show how prices of properties in the area have fluctuated.

It will also give insight into how good a property purchase will be.

What is a benefit of getting college credit in high school?
A) Graduating early
B) Spending more time on homework
C) Showing friends how smart I am
D) Spending too much money on tuition

Answers

a bc when u do college credits u are doung collehe in highsvool and so ubhet to graduate early ceom college
A, getting college credits can not only help with your tuition and save money. it also can provide a possible early graduation.

Suppose that the demand elasticity for cigarettes is equal to 2.0. If the demand elasticity for Camel cigarettes is equal to 6.0, must there be at least some cigarette brands with a demand elasticity less than 2.0. Explain.

Answers

Answer:

Let understand what elastic and inelastic demand is:

- If the small change in price causes heavy change in the quantity demanded then the demand is said to be elastic.

- Opposite to it is inelastic where even there is a very high change in the price but there is not so much effect on the quantity demanded.

Here, Camel cigarettes has a price elasticity of demand which is equal to 6 which means if the price suddenly increased, the quantity demanded will decrease. If any cigarette is having price elasticity of demand less than 2, it means it has less elasticity or if price increases very much then quantity demanded will not be affected so much.


85 percent of CNN's airtime is opinion based.

True
False

Answers

true 85% of CNN’s airtime is opinion based

Answer:

the show is mostly opinion based and used off there own thoghts

6. Describe what a Bond is and how it works.
WE WERE TRYING TO BE NORMAL AND THEN THE CREEP SHOWS UP

Answers

Answer:

✨I'm dead-✨

Explanation:

ℐ ℯ ℊℴℯ ... -LilDemon66

Name two global exchange services

Answers

Answer:

Western Union: western union has global presence and specializes in the delivery of transfer payments. Many people who lived in developing countries use Western Union to obtain the transfer payments that they are sent from relatives living in developed countries.

PayPal: PayPal works like Western Union but for online payments. It is the most commonly used platform for online payment in the world, has a global services, and provides an easy solution for people living in countries with capital controls for example, and who need to receive payments from abroad that originally come in foreign currency.

Answer:

wsp

Explanation:

wsp

Is the following scenario a partnership? Agreeing to operate an online store to sell gidgits with two people who contributed the
necessary investment capital.
Ο Νο
OYes

Answers

Answer:

Yes

Explanation:

The partnership is an agreement made between two or more people in order to share the profit and losses in their profit sharing ratio

Since in the question it is mentioned that the online store is to be opened between two people who wants to contribute the required investment capital

So this situation represent the partnership

Through a comparable company analysis for Alibaba, you determined a P/E ratio of 6.0x is appropriate to value the company. Based on this metric, what is the implied Enterprise Value of Alibaba?

Answers

Answer:

hello your question is incomplete attached below is the complete question

answer : $ 1,391.692 ( first option )

Explanation:

Given P/E ratio = 6.0

Determine Implied Enterprise value

Implied Enterprise value =  (EBITDA * P/E ratio ) + Net debt (cash )

where EBITDA = $205.663

P/E ratio = 6

Net debt = $157.714

hence Implied Enterprise value = (205.663 * 6)+ 157.714 ≈ $ 1,391.692

NOTE : all $ values are in millions

The implied Enterprise Value of Alibaba is $740,366‎

The calculation is as follows:

Implied equity value = NTM earnings × P/E ratio

= $149,680 × 6.0

= $898,080‎

Now Implied enterprise value

= Implied equity value + Net debt

= $898,080 - $157,714

= $740,366‎

Therefore we can conclude that The implied Enterprise Value of Alibaba is $740,366‎

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Which of these images is most likely to portray nonverbal communication?

please help asap!!

Answers

The second image is most likely to portray non-verbal communication. Hence, option B is correct.

What is non-verbal communication?

Nonverbal communication describes the methods by which people communicate their feelings, needs, intentions, attitudes, and thoughts without using words.

Body Language Human connection often involves nonverbal communication. For instance, a person's attitude and thoughts can be conveyed to others through tone, facial expressions, and gestures, and actions are frequently much more powerful than words.

Thus, option B is correct.

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please answer...........​

Answers

Answer:

I would say its false ...............

Son los que se produjeron en determinado periodo: los costos de los productos vendidos o los costos de los que se encuentran en proceso

Answers

La respuesta correcta para esta pregunta abierta es la siguiente.

A pesar de que no se anexan opciones o incisos para responder, podemos decir lo siguiente.

Aquí estamos hablando de los costos históricos. Estos costos son los que se produjeron en determinado periodo: los costos de los productos vendidos o los costos de los que se encuentran en proceso.

Un buen contador dentro de la empresa, se basará en estos costos históricos para poder predecir o proyectar los costos predeterminados y tener cierta información de lo que puede suceder a corto o mediano plazo.

Recordemos que esos costos predeterminados son necesarios para que los contadores puedan elaborar presupuestos lo más apegados a la realidad y se puedan ajustar con el tiempo. Para elaborar estos costos predeterminados, el contador hace uso de herramientas estadísticas.

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