Entries by Hannah Wangui

abbreviated income statement and balance sheet

Question The following table shows an abbreviated income statement and balance sheet for McDonald’s Corporation for 2012. INCOME STATEMENT OF MCDONALD’S CORP., 2012 (Figures in $ millions)   Net sales 27,587     Costs 17,589     Depreciation 1,422         Earnings before interest and taxes (EBIT) 8,576     Interest expense 537         Pretax income […]

 

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margin account

Question ou’ve just opened a margin account with $16,000 at your local brokerage firm. You instruct your broker to purchase 700 shares of Landon Golf stock, which currently sells for $47 per share. Suppose the call money rate is 6 percent and your broker charges you a spread of 1 percent over this rate. You […]

 

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shares

Question fSuppose you purchase 1,350 shares of stock at $36 per share with an initial cash investment of $21,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. a.Calculate your return on investment one year later if the share price is $44. Suppose instead you had simply […]

 

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shares

Question 4You just sold short 950 shares of Wetscope, Inc., a fledgling software firm, at $72 per share. You cover your short when the price hits $66.00 per share one year later. If the company paid $.46 per share in dividends over this period, what is your rate of return on the investment? Assume an initial […]

 

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