Answer for question 1
Stock is purchased for = 300 * 40 = $ 12000
Amount borrowed from broker = $4000
Therefore initial margin when she purchased the stock = 12000-4000 = $8000
Answer for question 2
If stock price falls to $30 value of stock = $30 * 300 = 9000
Therefore margin in the account if price falls to $30 = 9000-4000 = $5000
The following information applies to the next two questions. Dée Trader opens a brokerage account and...
The following information applies to the next two questions Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. Question 1 (1 point) What is the initial margin in Dée's account when she first purchases the stock? Enter your answer as a decimal, rounded to two decimal places. Your Answer Answer Question 2 (1 point) If the share price falls to...
Dée trailer opens a brokerage account and purchases 100 Shares
of Internet dreams that $60 per share. She borrows $2000 from her
broker to help pay for the purchase. The interest rate on the loan
is 10% what is the margin in his account when she first purchase
the stock? If the share price falls to $50 per share by the end of
the year what is the remaining margin in her account? (Round your
answer to two decimal places.)...
Dée Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $20 per share. She borrows $2,500 from her broker to help pay for the purchase. The interest rate on the loan is 7%. a. What is the margin in Dée's account when she first purchases the stock? Margin b. If the share price falls to $10 per share by the end of the year, what is the remaining margin in her account? (Round your answer to...
ROUNDED TO TWO DECIMAL PLACES AS NEEDED. THANK YOU.
The following information applies to the next two questions Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. Question 1 (1 point) What is the initial margin in Dée's account when she first purchases the stock? Enter your answer as a decimal, rounded to two decimal places. Your Answer: Answer Question...
Dée Trader opens a brokerage account, and purchases 390 shares of Internet Dreams at $72 per share. She borrows $3,610 from her broker to help pay for the purchase (Ignore transaction costs). The interest rate on the loan is 8%. Requirement 1: What is the margin (aka, $ of equity) in Dée's account when she first purchases the stock? (Omit the "$" sign in your response.) Margin $ Requirement 2: (a) If the share price falls to $62 per share...
A trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. If the maintenance margin requirement is 50%, below what stock price will she receive a margin call? Round your answer to 2 decimal places. For example if your answer is 0.666, then please write down 0.67.
Below is my question and my professors answer. I do not
understand how she gets (B) or (C), if someone could help explain
this it would be much appreciated. Thanks!
15. Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. (LO 34) a. What is the margin in Dée's account when she...
Saved Help Se Problem 3-14 DRK, Inc., has just sold 60,000 shares in an initial public offering. The underwriter's explicit fees were $36,000. The offering price for the shares was $68, but immediately upon issue, the share price jumped to $70.00 a. What is the total cost to DRK of the equity issue? Total cost b. Is the entire cost of the underwriting a source of profit to the underwriters? Yes No 1 of 5 !!! Next > Co search...
Check my work 12 You've just opened a margin account with $15,000 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $26 per share. 3 points a. What is your initial margin? (Enter your answer as a percent rounded to 2 decimal places.) Initial margin C % eBook Print b. Construct the equity account balance sheet for this position. Assets 800 shares Liabilities and account equity Margin loan...
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