# Fin 550 chap 4 homework

Chapter 4  Homework

# 4-7

4. You career to vend blunt 100 distributes of Charlotte Horse Farms when it is vending at its per-annum haughty of \$56. Your broker tells you that your edge capacity is 45 percent and that the legation on the escheatment is \$155. While you are blunt the supply, Charlotte pays \$2.50 per distribute dividend. At the end of one year, you buy 100 distributes of Charlotte at \$45 to bar out your standing and are pregnant a legation of \$145 and 8 percent portion-out on the money borrowed. What is your blame of come-back on the bombardment?

5. You own 200 distributes of Shamrock Enterprises that you bought at \$25 a distribute. The supply is now vending for \$45 a distribute.

a. You put in a plug dropping appoint at \$40. Discuss your forced for this exercise.

b. If the supply at-last declines in worth to \$30 a distribute, what would be your blame of come-back delay and delayout the plug dropping appoint?

6. Two years ago, you bought 300 distributes of Kayleigh Milk Co. for \$30 a distribute delay a edge of \$60 percent. Currently, the Kayleigh supply is vending for \$45 a distribute. Assuming no dividends and ignoring legations, calculate (a) the annualized blame of come-back on this bombardment if you had paid money and (b) your blame of come-back delay the edge escheatment.

7. The supply of the Madison Travel Co. is vending for @28 a distribute. You put in a period buy appoint at \$24 for one month. During the month the supply pirce declines to \$20, then jumps to \$36. Ignoring legations, what would entertain been your blame of come-back on this bombardment? What would be your blame of come-back if you had put in a chaffer appoint? What if your period appoint was at \$18?