Answer? ? Financial 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

Step 1: Define Stock MarginStock margin is a facility offered by the stock broker to the investors.…

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%)
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.)
Suppose you owned 1000 shares of stocks in ABC Corporation. You purchased the shares at a price of $102.41 per share and sold them at $160.38. Calculate the broker's commission if your broker charges 3.6% of the total sale price. a. $160, 380.00b. $3, 686.76 c. $57, 970.00 d. $5, 773.68
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
Give true answer the following requirements on these financial accounting question
Suppose that Xtel currently is selling at $46 per share. You buy 250 shares using $8,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 6%. Required: a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to: (i) $48.76; (ii) $46; (iii) $43.24? What is the relationship between your percentage return and the percentage change in the price of Xtel? b. If the maintenance margin is 25%, how low can Xtel's price fall before you get a margin call? c. How would your answer to (b) change if you had financed the initial purchase with only $5,750 of your own money? d. What is the rate of return on your margined position (assuming again that you invest $8,000 of your own money) if Xtel is selling after 1 year at: (i) $48.76; (ii) $46; (iii) $43.24? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel…
Suppose you owned 1000 shares of stocks in ABC Corporation. You purchased the shares at a price of $102.41 per share and sold them at $160.38. Question 11 options: Calculate the broker's commission if your broker charges 3.6% of the total sale price, Ignoring dividends, determine your profit on the sale of all the purchased stock? 1. $160, 380.00 2. $3, 686.76 3. $57, 970.00 4. $5, 773.68
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Suppose that Brue currently is selling at $50 per share. You buy 900 shares using $36,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%. What is the percentage increase in the net worth of your brokerage account if the price of Brue immediately changes to (a) $56; (b) $50; and (c)$44?

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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