If you purchased 500 shares at $30 per shares. 55% margin,paid 13% interest sold $40 per shares rate of return

Answer 1

Is the interest rate per annum? How long did you hold the shares?

Answer 2

Use the consistent advance dividend valuation form: 10%-7% = 3% 3% x $40= $a million.20, next year's dividend $a million.20 / a million.07 = $a million.12, answer A For Corrigan first locate the mandatory fee of go back: RRR = .03 + a million.2 ( .05 ) = .09 or 9.0% an same form as above 9.0% - 5% = 4.0%; next year's dividend $a million x a million.05 = $a million.05 inventory value = a million.05 / 0.04 = $26.25, answer e