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22.04.2020 •
Business
Suppose you want to invest in ABC stock that does not pay any dividends. A share is trading at $100. You put $10,000 of your own money and borrow $10,000 from your broker at 9% per year to purchase a total of 200 shares. What is the rate of return on this position if the stock goes down by 30% in the following 12 months
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Ответ:
A loss of 69%
Explanation:
Price per share $100
Equity invested $10,000
Funds taken from broker $10,000 at an Interest rate 9.00%
Total investment $20,000
Price change 30.00% less
Margin required 30.00%
Total shares purchased from investing = 200 shares
The shares decrease in value by 30%: $20,000 * 0.30 = $6,000.
You pay interest of = $10,000 * 0.09 = $900.
The rate of return will be:
"$6,000 － $900" /"$10,000" = - 0.69 = - 69%
Ответ:
it is a nuclei acid. it is found in dna . it is used to build an organism’s structures. it allows parents and their young to have similar characteristics.
Explanation: