Provide correct answer general Accounting question Assume you purchased 800 shares of XYZcommon stock on margin at $45 per sharefrom your broker. If the initial margin is 70%,the amount you borrowed from the broker isa. $36,000b. $10,800c. $46,800d. $25,200

To calculate the amount borrowed from the broker, follow these steps: 1. Calculate the total…

Answered: Assume you purchased 800 shares of XYZ…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume you purchased 500 shares of XYZ common stock on margin at $29 per share from your broker. A. Find the following (note: fill in the blanks with values rounded to the nearest cent, no dollar signs "$", and commas "". Example: $1,234.567 >>> write as 1234.57) If the initial margin is 57%, the amount you borrowed from the broker is $ and your equity is $ B. What is the new margin if the price of share falls to $31? (note: fill in the blank with rounded % as follows: example 34.567% >>> write as 34.57%)
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Please give me answer general accounting question
Assume you purchased 236 shares of XYZ common stock on margin at $85.29 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is __________. Group of answer choices 6606 8051 6498 7591 7110
Suppose that you just short sold 100 shares of Quiet Minds stock for $86.00 per share. Required: a. If the initial margin requirement is 60%, how much equity must you invest?
Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The initial margin requirement is 70.0%, which means the amount borrowed is $5,250. The corresponding balance sheet is below: Assets Liabilities and Equity Stock $ 17,500.00 Loan from broker $ 5,250.00 Equity $ 12,250.00 Total assets $ 17,500.00 Total liabilities and equity $ 17,500.00 Required: a. Now suppose the price of the stock falls to $41 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) b. Construct the balance sheet to show the current situation. c. If the maintenance margin is 50%, at what stock price would you get a margin call? (Round your answer to 2 decimal places.)
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a) You purchase 516 shares of ABC Co. stock on margin at a price of $37. Your broker requires you to deposit $12,300. What is the initial margin requirement in percent? Answer to two decimals. b) You purchased 391 shares of PQR, Inc., stock on 56% margin when the stock was selling for $34.46 a share. The stock is currently selling for $33.54 a share. What is your current equity position (in $)? Answer to two decimals. c) You purchase 639 shares of XYZ Co. stock on margin at a price of $27. Your broker requires you to deposit $6,535. A month later, you sell the stock at a price of $28. What is your return in percent? Answer to two decimals. d) Tom purchased 549 shares of stock on margin for $28.52 a share and sold the shares 3 months later for $28.34 a share. The initial margin requirement was 71 percent and the maintenance margin was 29 percent. The interest rate on the margin loan was 5 percent. He received no dividend income. What was his holding period return (in percent)? Answer to…
What is the initial margin requirement?
You purchased 1000 shares of IBM common stock on margin at $140 per share from your broker. If the initial margin requirement is 60%, then the amount you would need to borrow from the broker is O $84,000 $75,000 $56,000 O $49.000

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Assume you purchased 800 shares of XYZ common stock on margin at $45 per share from your broker. If the initial margin is 70%, the amount you borrowed from the broker is a. $36,000 b. $10,800 c. $46,800 d. $25,200