Topic C Exercises F2023 (1)

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BFIN4227 Section (AA, AB, or AD): AB Student Name: Jonathan Angelo Exercise #1: (Slide 9) Complete the answers to (a) (b) (c) (d) (e) for the following IPOs: Name UBER TECHNOLOGIES I SNOWFLAKE INC DOORDASH INC Ticker UBER US Equity SNOW US Equity DASH US Equity IPO Date 5/10/2019 9/16/2020 12/9/2020 No. of IPO Shares Offered (in Millions) 180.00 28.00 33.00 IPO Offering Price $45.00 $120.00 $102.00 First Day Open Price $42.00 $253.93 $182.00 First Day Closing Price $41.57 $245.00 $189.51 Last Price (as of 09/08/2023) $47.24 $165.95 $98.04 $8,100.00 $3,360.00 $3,366.00 -$617.40 $3,500.00 $2,887.83 -7.62% 104.17% 85.79% 4.98% 38.29% -3.88% 13.64% -32.27% -48.27% Submit your work (showing detailed steps and final answers) through Canvas.  Show the calculations in details (in a word, image, or pdf document) and attach an excel file (with formulas) to show your work . (a) IPO Proceeds (offer amount in million USD) (b) Amount of Money Left on the Table (in million USD) (c) IPO Underpricing: First Day Return from IPO Offering Price to first day Closing Price (d) Return from IPO Offer Price to Last Price (as of 09/08/2023) (e) Return from IPO first day closing price to Last price (as of 09/08/2023)
An investor opens her first brokerage account, and purchases 500 shares of a stock at $50 per share. She a) Total $ $ 25,000.00 Borrowed $ 12,000.00 Equity Margin $ 13,000.00 Initial margin % 52.00% b) Price falls to $43 new total $ 21,500.00 borrow $ 12,000.00 Intrest % 2.00% Borrowed + Interest $ 12,240.00 new margin $ 9,260.00 new margin % 43.07% c) Total $ $ 21,500.00 Initial Equity $ 13,000.00 End Equity $ 9,260.00 Return on Investment -28.77% 2.      Margin Trading (slide 31) a)      What is the initial margin in her account when she first purchases the stock? b)     If the price falls to $43 per share by the end of the quarter, what is the remaining margin in c)      What is the rate of return on the investment if she sells the shares at the end of the quarter
borrows $12,000 from her broker to help pay for the purchase. The interest rate of the loan is 8%. n her account? If the maintenance margin requirement is 40%, will she receive a margin call? at $43 per share?
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You sold short 200 shares of a stock at $125 per share at the beginning of the year. The initial equi a) Total $ $ 25,000.00 Borrowed $ 12,500.00 Equity margin $ 12,500.00 Proceeds + Initial Equity $ 37,500.00 shares 200 Additional Shares till Call 70 Amount of Shares for Call 270 Stock Price $ 138.89 b) Total Assets $ 37,500.00 New Total $ $ 22,000.00 Dividneds $ 0.40 # of Quarters 4.00 Dividends Gained $ 320.00 Ending Equity $ 15,180.00 Initial Equity $ 12,500.00 Rate of Return 21.44% 3.      Short Sales (slide 37) a)      At what stock price would you receive a margin call if the maintenance margin is 35 b)     Assume that the stock paid a $0.40 dividend per share each quarter, what is the rate o
ity margin is 50%. 5%? (do not consider dividends in question a) of return if you buy to cover the shares at $110 per share at the end of the year?