Stewie bought 200 shares of stock at a price of $10 a share….

Stewie bought 200 shares of stock at a price of $10 a share. He used his 70% margin account to make the purchase. He sold his stock after a year for $12 a share. Ignoring margin interest and trading costs, what is Stewie's return on Investor's equity for this investment? A) 29% B) 10% C) 14% D) 67% Kenny plans to buy a Chef Inc. stock today. His analyst informs him that Chef Inc plans to pay $2.00 dividends for the next 2 years and also. Chef Inc. plans to buyback the stock at a fixed price of 25$.2 years from now. The analyst also tell Kenny that the CAPM required rate of return for Chef Inc. stock Is 10%. What is a fair price for Kenny to buy the stock today? A) $24.33 B) $24.13 C) $24.73 D) $25.03
Stewie bought 200 shares of stock at a price of $10 a share….

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