Chapter 2 Excel IPO-Short Sell-Margin (1) (1)

xlsx

School

Stony Brook University *

*We aren’t endorsed by this school

Course

355

Subject

Finance

Date

Jun 4, 2024

Type

xlsx

Pages

Uploaded by ColonelDragonflyMaster669

Chapter 2 Excel Calculations f a. Calculate the gross proceeds for Yext’s IPO. b. Calculate Yext's IPO underpricing. c. Calculate the money left on the table for Yext's IPO. a. Calculate the gross proceeds for Yext’s IPO. Offer price per share $11 # of IPO shares issued 10,500,000 Gross Proceeds $115,500,000 b. Calculate Yext's IPO underpricing. Offer price per share $11 Market price per share $13.41 IPO underpricing $21.9 c. Calculate the dollar amount of the underwriting fee for Yext’s IPO. Underwriting discount per share $2.41 # of IPO shares issued 10,500,000 $25,305,000 On April 13, 2017, Yext Inc. completed its IPO on the NYSE. Yext sold 10,500,000 sha share. Yext’s closing stock price on the first day of trading on the secondary market was Dollar amount of underwriter discount

for IPO ares of stock at an offer price of $11 per s $13.41.

Chapter 2 Short Sells and Margin A round lot is 100 shares of stock, assume one lot. For each of the following situations Calculate Profit or Loss (no commissions) Profit/Loss You sell short at $ 20.00 And Repurchase at $ 18 $200 You take a long position at $ 20.00 And then sell $ 18 -$200 You sell short at $ 15.00 And Repurchase at $ 18 -$300 You take a long position at $ 15.00 And then sell $ 18 $300 You sell short at $ 25.00 And Repurchase at $ 18 $700 You take a long position at $ 25.00 And then sell $ 18 -$700 A round lot is 100 shares of stock, assume one lot. For each of the following situations Calculate Profit or Loss (no commissions) Profit/Loss You sell short at $ 30.00 And Repurchase at $ 43 -$1,300 You take a long position at $ 30.00 And then sell $ 25 -$500 You sell short at $ 53.00 And Repurchase at $ 23 $2,800 You take a long position at $ 53.00 And then sell $ 65 $1,200 You sell short at $ 48.00 And Repurchase at $ 41 $700 You take a long position at $ 48.00 And then sell $ 47 -$700 a. She sells short and repurchases the borrowed shares at $295 per share. b. She takes a long position and sells the stock at $295 per share. c. She sells short and repurchases the borrowed shares at $255 per share. d. She takes a long position and sells the stock at $255 per share. Solution a. She sells short and repurchases the borrowed shares at $295 per share. Short sale initiated: Market price per share $270 # of shares sold short 100 Proceeds $27,000 Short sale covered: Market price per share $295 # of shares purchased 100 Cost to investor $29,500 Gain/loss -$2,500 b. She takes a long position and sells the stock at $295 per share. Market price per share $270 # of shares purchased 100 Cost to investor $27,000 Suppose that Tesla stock is currently selling at $270 per share. For each of the following situations (ignoring brokerage commiss the gain or loss that Olivia Crowe realizes if she makes a 100-share transaction. Long purchase initiated:

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Chapter 2 Short Sells and Margin Margin % = (Value of Securities – $’s loaned) / Value of Securities Assume an investor buys 100 shares of stock at $50 per share putting up a 60% margi What is the debit balance in this transaction? How much equity capital must the investor provide to make this margin transaction? If the stock rises to $60 per share what is the investors new margin position? Assume an investor buys 100 shares of stock at $40 per share putting up a 55% margi What is the debit balance in this transaction? How much equity capital must the investor provide to make this margin transaction? If the stock rises to $48 per share what is the investors new margin position? Assume an investor buys 100 shares of stock at $34 per share putting up a 70% margi What is the debit balance in this transaction? How much equity capital must the investor provide to make this margin transaction? If the stock rises to $40 per share what is the investors new margin position? Margin Call Price = Amount Borrowed/(#of Shares*(1-Margin Maintenance %) You purchased 100 shares of stock at $40 per share using an initial margin of 40%. The maintenance margin is 25%. Assume you have no other securities in Your accoun At what price pre share will you expect to receive a margin call? You purchased 100 shares of stock at $63 per share using an initial margin of 55%. The maintenance margin is 30%. Assume you have no other securities in Your accoun At what price pre share will you expect to receive a margin call? You purchased 300 shares of stock at $15 per share using an initial margin of 45%. The maintenance margin is 25%. Assume you have no other securities in Your accoun At what price pre share will you expect to receive a margin call?

5000 Market value 2000 Debit Bal ($Loaned) 3000 Equity (cash) 67% New Margin 4000 Market value 1800 Debit Bal ($Loaned) 2200 Equity (cash) 55% New Margin 3400 Market value 1020 Debit Bal ($Loaned) 2380 Equity (cash) 70% New Margin )) 2400 Debit Bal ($Loaned) nt. $32.00 nt. $40.50 nt. $11.00