Hudson has a margin account with $17,400 in available cash. The initial margin is 70% and the maintenance margin is 30% What is the maximum number of shares he can purchase if the price per share is $50
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- Please answer fast i give you upvote.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: Liabilities and Equity Stock Total assets Margin percentage Assets 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. Stock Total assets $ 17,500.00 $ 17,500.00 c. If the maintenance margin is 50%, at what stock price would you get a margin call? (Round your answer to 2 decimal places.) Price Loan from broker. Equity Total liabilities and equity Assets % $ 5,250.00 $ 12,250.00 $ 17,500.00 Liabilities and Equity Loan from broker Equity Total liabilities and equityPlease give me answer accounting
- You have just purchased a share for $29.33. The company is expected to pay a dividend of $0.57 per share in exactly one year. If you want to earn a 10.7% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of year 1 for $36. At the end of year 1, you receive a $2 dividend, and buy one more share for $30. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $36.45 each. The time-weighted return on your investment is 12.35% -1.75% 4.08% 8.53% O 11.46%Suppose you short sell 100 shares of Twitter priced at $50 a share. The initial margin is 50% and the maintenance margin is 30%. a. Show the initial balance sheet view of your position, including assets, liabilities, & owners’ equity. b. At what price of the stock will your return be 45%?
- You purchased 250 shares of common stock on margin for $ 28 per share . The initial margin is 70 % and the stock pays no dividend but has a trading cost of $ 0.1 per share . Your rate of return would be if you sell the stock at $ 36 per share . Hgnore interest on margin1. You purchase 100 shares for $50 a share ($5,000), and after a yearthe price rises to $60. What will be the percentage return on yourinvestment if you bought the stock on margin and the marginrequirement was? a.25 percent b.50 percent c.75 percent 2. Repeat Problem 1 to determine the percentage return on yourinvestment but in this case suppose the price of the stock falls to$40 per share. What generalization can be inferred from youranswers to Problems 1 and 2? 3. How many years will it take for 197000 dollars to grow to 554000 dollars if it is invested in an account with a quoted annual interest rate of 8 percent with monthly compounding interest?Suppose the call money rate is 4.5 percent, and you pay a spread of 2.5 percent over that. You buy 800 shares of stock at $36 per share. You put up $14, 400. One year later, the stock is selling for $48 per share and you close out your position. What is your return assuming a dividend of $0.65 per share is paid?
- You've borrowed $27,392 on margin to buy shares in bxnay, which is now selling at $42.8 per share. You invest 1280 shares. Your account starts at the initial margin requirement of 50% The maintenance margin is 35%. Two days later, the stock price changes to $49 per share. a. Will you receive a margin call? O Yes ONo b. At what price will you receive a margin cal? (Round your answer to 2 decimel pleces.)You have just purchased a share of stock for $21.11. The company is expected to pay a dividend of $0.53 per share in exactly one year. If you want to earn a 10.2% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?You've borrowed $27,950 on margin to buy shares in Ixnay, which is now selling at $43.0 per share. You invest 1,300 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%, Two days later, the stock price changes to $50 per share. Required: a. Will you receive a margin call? O Yes O No b. At what price will you receive a margin call? (Round your answer to 2 decimal places.) Stock price