You purchased 1,000 shares of common stock on margin at R40 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of R28? %?

Q: A preferred stock from Hecla Mining Co. (HLPRB) pays $3.50 in annual dividends. If the required…

A: A preferred share is a share that enjoys priority in receiving dividends as compared to common…

Q: An investor buys 100 shares of Altria at $82 per share on margin. The initial margin requirement is…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Shares in OKComputer currently trade at $63.41. Your broker allows you to short sell the shares with…

A: Initia Margin is the amount trader needs to deposit with broker for trading securities Maintenance…

Q: An investor buys $20,000 worth of a stock priced at $25 per share using

A: Given information : Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge…

Q: The periodic money weighted rate of return on the investment is closest to:

A: We can determine the time-weighted return by determining the IRR of the cash flows.

Q: Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to…

A: We need to compute percentage return due to price rise or fall.

Q: Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy…

A: A margin account refers to an account used for purchasing securities where the investor has to pay…

Q: You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for…

A: ParticularsValuesNumber of shares purchased1000Purchase Price per share$143Selling price per…

Q: An equity share costing Rs.100/- pays no dividends. The possible prices that the share might sell…

A: A statistical measure that represents the variation in the return on the stock is term as the…

Q: You’ve borrowed $14,000 on margin to buy shares in Ixnay, which is now selling at $56 per share.…

A: a) Working note:

Q: A stock price is $85.00. Assume r = 0.07 and there is no dividend. What is the 6-month forward…

A: Forward contracts are used for the purpose of hedging or speculation and involve the purchase or…

Q: Big Oil, Inc. has a preferred stock outstanding that pays a $9 annual dividend. If investors'…

A: Annual dividend (D) = $9 Required return (r) = 0.10 Required return declines to (r1) = 0.08   We…

Q: What is the rate of return when 30 shares of stock a, purchased for 30$/ share, are sold for $1100?…

A: Rate of Return : It is the rate of earning on the initial investment amount. It is calculated by…

Q: The current stock price of Sanders is at $35.  A put on Sanders stock with a strike price of $35 is…

A: Covered call is an option strategy that involves holding a long position in the underlying asset (in…

Q: uppose that Nintendo Co., Ltd. (NTDOY) is currently trading at $180 per share. Mark buys 200 shares,…

A: Brokers provide margins to client for trading and so that they can trade more and so that client and…

Q: An investor short sells 100 shares of a stock for $68.59 per share. The initial margin is 58%, and…

A: Margin refers to the amount of money that is borrowed to finance the underlying transaction, It is…

Q: Big Brothers, Inc. has a preferred stock outstanding that pays a $6 annual dividend. If investors'…

A: A preference share is a source of capital that charges a fixed dividend obligation. Preference…

Q: You want to purchase Stock A currently trading at $50 per share. You have $10,000 of your own to…

A: Maintenance margin is margin below which we will get margin call

Q: You purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at…

A: Purchase Price of Share =$50 Dividend Paid = $2 If Share prices after 1 year = $48, $50, $54…

Q: Assume you buy 200 shares of stock at $70 per share on margin (40 percent). a. If the price rises to…

A: A margin account refers to an account used for purchasing securities where the investor has to pay…

Q: You've borrowed $27,950 on margin to buy shares in Ixnay, which is now selling at $43.0 per share.…

A: Margin call refers to the excess money required to maintain the account for stock trading. Before…

Q: Assume that an investor buys 100 shares of stock at $37 per share, putting up a 65% margin. a. What…

A: A margin account refers to a brokerage account where securities are bought by paying only a portion…

Q: You currently hold a stock that is priced at $223. You buy an atthe-money put for $9. Compute the…

A: The put option is the option in which one party gives another party a promise to buy a particular…

Q: Suppose you sold short 100 shares of some stock on January 1 at a price of $30 per share. A dividend…

A: Gain on Sale = Sale Price of Shares - Cost of acquisition of Share - Transaction cost

Q: You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend…

A: Recent dividend (D0) = $3.53Constant growth rate (g) = 4.2% or 0.042Expected Dividend (D1) = D0 × (1…

Q: The margin requirement on a stock purchase is 30%. You fully use the margin allowed to purchase 200…

A: The term stocks or shares refers to the equity security that is issued by the company to raise…

Q: Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%.…

A: Total Cost of buying shares = 1000 shares * $35 per share Total cost of buying shares =$35,000 Your…

Q: The price one year from now should be $_______.

A: A stock price is a given for each proportion issued via way of means of a publicly-traded…

Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin…

A:

Q: Assume you buy 100 shares of stock at $40 per share on margin (40 percent). If the price rises to…

A: If the price declines to $28, then the market value of the securities will be $2,800 (100 shares x…

Q: Deluxe Company expects to pay a dividend of $2 per share at the end of year 1. $3 per share at the…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: You believe the price of Freeze Frame Co. stock is going to fall, so you short 1,000 shares at a…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Jersey Medical earns $9.00 a share, sells for $100, and pays a $7 per share dividend. The stock is…

A: (A)- A stock is split two for one which implies that stock holder will get 2 shares for every 1…

Q: Suppose you can buy 983 shares of Vertex Pharmaceuticals Incorporated (VRTX) stock on margin at $167…

A: Percent return refers to the return that is being earned over the investment amount by the investors…

Q: f Volatile n at the E the end c 2 dividon

A: Write down the cash flows Year Cash Flows Description 0 -36 Purchase one share for 36…

Q: Suppose you recently performed a short sale on IBM stock at $174/share. Initial margin 55%,…

A: Stock margin refers to the amount of loan that the broker offers to the investor to execute the…

Q: A stock does not currently pay a dividend, but you expect to sell the stock for $73 in 4 years. The…

A: Stock price in 4 years (P4) = $73 Period (n) = 4 Years Required return (r) = 7%

Q: The current price of a stock is $20 per share. You have $10,000 to invest. You borrow an additional…

A: Margin call is a function of initial margin and maintenance margin

Q: If you place a stop-loss order to sell at $52 on a stock currently selling for $55.50 per share,…

A: Stop loss- This is a method adopted by an investor to limit the loss on a security position. The…

Q: You sold short 200 shares of Stock B at $25 per share.  You have put additional $2,500 to meet the…

A: Here, Price of the Stock B is $25 No. of Shares are 200 Initial Margin Requirement is $2,500…

Q: Stock A just paid a dividend of $2. The dividend is expected to grow at a fixed rate of 1.9% and…

A: To calculate the price of Stock A with a perpetually growing dividend at a fixed rate, you can use…