You Have Just Bought (On Margin)100 Shares of IBM Corp

question 90

Essay

You have just bought (on margin)100 shares of IBM Corp.common stock for $108 per share.One year from now you expect to sell the stock for $140.The interest charge will be 9%.What return do you expect to earn on your investment? (Show all work.Ignore commissions.)

---

Definitions:

Indirect Labour Costs

Costs related to employees that cannot be directly traced back to a specific product or service, such as supervisory salaries and maintenance labor.

Timesheet

A document or software where employees' working hours are recorded.

Work in Process Inventory

Partially finished goods that are in the process of being produced but are not yet complete.

General Ledger

The master set of accounts that summarize all transactions occurring within an entity, used to prepare financial statements.