PLEASE ANSWER THE 2 QUESTIONS BELOW: Scott is buying $5.000 worth of a stock wit

Question

PLEASE ANSWER THE 2 QUESTIONS BELOW:

Scott is buying $5.000 worth of a stock with $4.000 in cash plus a $1.000 margin loan. If you constructed a balance sheet reflecting this transaction, the total assets would be: 1. $4,000. 2.$1,000. 3. $5,000. 4.$9,000. 5. $6,000. You purchased 200 shares of a stock for $28.33 a share and sold the shares one year later for $27.16 a share. Over the year, you received a total of $.90 in dividends per share. What was your capital gains yield on this investment? 1. -0.99 percent 2. -4.13 percent 3.-4.27 percent 4.4.31 percent 5.-0.95 percent

Explanation / Answer

1. (27.16 - 28.33) / 28.33 = -4.12% ie. loss of 4.12%

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