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Cumulative Rate of Return of Stocks

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Question one
On Monday morning you sell one June T-bond futures contract at 97:27 or for $97843.75. The contracts face value is $100000. The initial margin requirement is $2700 and the maintenance margin requirement is $2000 per contract. Use the following data to answer the questions.
Day Settle
Monday $97 406.25
Tuesday $98 000.00
Wednesday $100 000.00

1. What is the balance on your margin account after Mondays close?
Date/Day Settlement Price ($) Mark-to-market Other entries Account Balance Explanation
Monday morning $97,843.75 0 $2700 $2700 Initial margin deposit of $2700.
Monday Closing $97,406.25 +$437.50 $3137.50 Price fell by 13/32 leaving profit by day end of $437.50
The balance in the margin account after the Monday close will be $3137.50

2. What is the cumulative rate of return on your investment at close of day on Tuesday?
Date/Day Settlement Price ($) Mark-to-market Other entries Account Balance Explanation
Monday morning $97,843.75 0 $2700 $2700 Initial margin deposit of $2700.
Monday ...

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This solution solves the cumulative rate of return.

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See Also This Related BrainMass Solution

What is the rate of return on common stock equity for 2011?

The following data are provided:

December 31
2011 2010
Cash $ 375,000 $ 250,000
Accounts receivable (net) 400,000 300,000
Inventories 650,000 550,000
Plant assets (net) 2,000,000 1,625,000
Accounts payable 275,000 200,000
Taxes payable 50,000 25,000
Bonds payable 350,000 350,000
10% Preferred stock, $50 par 500,000 500,000
Common stock, $10 par 600,000 450,000
Paid-in capital 400,000 325,000
Retained earnings 1,000,000 875,000
Net credit sales 3,200,000
Cost of goods sold 2,100,000
Operating expenses 725,000
Net income 375,000

Additional information: Depreciation included in cost of goods sold and operating expenses is $305,000. On May 1, 2011, 15,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2011.

What is the rate of return on common stock equity for 2011?

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