You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per...
You sold short 100 shares of Kraft Heinz Co. common stock on margin at $83.55 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $59.61, and it has paid cash dividends of $2.50 per share. What is your return on equity? Ignore margin interest.
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You sold short 100 shares of Kraft Heinz Co. common stock on
margin at $83.55 per...
You sold short 100 shares of Macy's, Inc. common stock on margin at $29.78 per share....
You sold short 100 shares of Macy's, Inc. common stock on margin at $29.78 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $17.00, and it has paid cash dividends of $1.51 per share. What is your return on equity? Ignore margin interest.
You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share. Assume...
You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $172.58. If the broker’s call loan rate is 2.00%, what is your return on equity? Note that Facebook pays no dividends.
You purchased 100 shares of Chipotle Mexican Grill, Inc. (CMG) common stock on margin at $431.79...
You purchased 100 shares of Chipotle Mexican Grill, Inc. (CMG) common stock on margin at $431.79 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $837.11. If the broker’s call loan rate is 2.00%, what is your return on equity?
You sold short 1,000 shares of a stock at $46 per share. The initial margin is...
You sold short 1,000 shares of a stock at $46 per share. The initial margin is 50%. a) At what stock price would you receive a margin call if the maintenance margin is 35%? (do not consider dividends in question a) b) Assume that the stock paid a $0.25 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $40 per share at the end of the quarter?
Question 19 (8 POINTS) Assume you sold short 100 shares of common stock at margin is...
Question 19 (8 POINTS) Assume you sold short 100 shares of common stock at margin is 60% shares of common stock at $50 per share. The initial a) What would be the maintenance margin if a margin call is made at a stock of $602 b) What is the maximum potential loss for a short seller? Briefly explain.
Assume you sold short 100 shares of common stock at $70 per share. The initial margin is 50%. what would be the maintena...
Assume you sold short 100 shares of common stock at $70 per share. The initial margin is 50%. what would be the maintenance margin if a margin call is made at a price of $85? a.40.5% b.20.5% c.35.5% d.23.5%
Assume you sell short 100 shares of common stock at $18 per share, with initial margin...
Assume you sell short 100 shares of common stock at $18 per share, with initial margin at 54%. What would be your rate of return if you repurchase the stock at $35 per share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction. Answer in percentages, for example if the answer is 43.51%, answer 43.51, and remember to use a dot as a decimal separator Clarification:...
You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the m...
You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. 1) Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. (15 pts) 2) Suppose that, unfortunately, the stock price drops to $48. You decide to put some additional cash to restore the margin. How much cash you need to inject to restore...
A short seller has sold 200 shares at $180 per share with an initial margin of...
A short seller has sold 200 shares at $180 per share with an initial margin of 60%. A few days later the stock paid $4 dividends per share. What is the profit to the short seller if the share price is now $160? 4,000 4,800 -4,800 3,200
2) You sell short 100 shares of ABC stock at $40 per share. The initial margin...
2) You sell short 100 shares of ABC stock at $40 per share. The initial margin is 50% and the maintenance margin is 40% How much do you post at the margin account as your initial margin per share? (20points) II) At what price will you get a margin call? (30points)
Question 19 (8 POINTS) Assume you sold short 100 shares of common stock at margin is 60% shares of common stock at $50 per share. The initial a) What would be the maintenance margin if a margin call is made at a stock of $602 b) What is the maximum potential loss for a short seller? Briefly explain.
You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. 1) Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. (15 pts) 2) Suppose that, unfortunately, the stock price drops to $48. You decide to put some additional cash to restore the margin. How much cash you need to inject to restore...
2) You sell short 100 shares of ABC stock at $40 per share. The initial margin is 50% and the maintenance margin is 40% How much do you post at the margin account as your initial margin per share? (20points) II) At what price will you get a margin call? (30points)
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