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You buy 100 shares of stock XYZ at $50/share on margin. Your broker makes you deposit...
Suppose you buy a round lot of Francesca Industries stock (100 shares) on 60 percent margin...
Suppose you buy a round lot of Francesca Industries stock (100 shares) on 60 percent margin when the stock is selling at $30 a share. The broker charges a 8 percent annual interest rate, and commissions are 4 percent of the stock value on the purchase and sale. A year later you receive a $0.70 per share dividend and sell the stock for $40 a share. What is your rate of return on Francesca Industries? Do not round intermediate calculations....
Carlos buys 100 shares of IBM for $100 per share on 50% margin. a) How much...
Carlos buys 100 shares of IBM for $100 per share on 50% margin. a) How much money does Carlos need to give to his broker, and how much money does he borrow? b) If IBM goes up to $120 per share, how many more shares could Carlos sell without sending his broker more money? c) If IBM goes down to $80 per share, how much money does Carlos have to send his broker to get back to the 50% margin...
You purchase 674 shares of XYZ Co. stock on margin at a price of $25. Your...
You purchase 674 shares of XYZ Co. stock on margin at a price of $25. Your broker requires you to deposit $8901. A month later, you sell the stock at a price of $27. What is your return in percent? Answer to two decimals.
You purchase 504 shares of XYZ Co. stock on margin at a price of $33. Your...
You purchase 504 shares of XYZ Co. stock on margin at a price of $33. Your broker requires you to deposit $8,839. A month later, you sell the stock at a price of $29. What is your return in percent? Answer to two decimals.
Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin i...
Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If the initial margin is 60%, the amount you borrowed from the broker is _________. $20,000 $12,000 $8,000 D.$15,000
Suppose that XYZ currently is trading at $20 per share. You buy 1,000 shares using $15,000...
Suppose that XYZ currently is trading at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase cost from your broker. The rate on the margin loan is 8%. a) What is your rate of return if the price of XYZ immediately changes to $22? b) With the same information on stock XYZ and your initial margin above, assume a year has passed. How low can XYZ's price per share fall...
You purchase 547 shares of stock on margin for $48 per share. Your broker requires you...
You purchase 547 shares of stock on margin for $48 per share. Your broker requires you to post a 65% initial margin. What much money will you need to borrow from the broker? (Express your solution as a decimal with two digits of accuracy.)
Question 3 1 pts You purchase 660 shares of XYZ Co. stock on margin at a...
Question 3 1 pts You purchase 660 shares of XYZ Co. stock on margin at a price of $25. Your broker requires you to deposit $7,808. A month later, you sell the stock at a price of $28. What is your return in percent? Answer to two decimals.
You want to purchase 50 shares of IBM stock at 80 from your broker. The initial...
You want to purchase 50 shares of IBM stock at 80 from your broker. The initial margin is 50% a. Construct your balance sheet when you open the position at P=$80. b. suppose the stock price falls to 50, construct the balance sheet at that price c. calculate the percentage margin at P=$50. If the maintenance margin is 30%, will you receive a margin call> d. suppose you close your position at p=50. what is your return from this transaction?
You purchase 100 shares of Twitter (TWTR) at $27 per share. To pay the purchase, you...
You purchase 100 shares of Twitter (TWTR) at $27 per share. To pay the purchase, you borrow $1,000 from your broker. If Twitter falls to $25 per share, what is the remaining margin (percentage) in your account? Question: If the maintenance requirement is 30%, will you receive a margin call when the price falls to $15? Ignore the interest rate on the loan.
Suppose you buy a round lot of Francesca Industries stock (100 shares) on 60 percent margin when the stock is selling at $30 a share. The broker charges a 8 percent annual interest rate, and commissions are 4 percent of the stock value on the purchase and sale. A year later you receive a $0.70 per share dividend and sell the stock for $40 a share. What is your rate of return on Francesca Industries? Do not round intermediate calculations....
You purchase 504 shares of XYZ Co. stock on margin at a price of $33. Your broker requires you to deposit $8,839. A month later, you sell the stock at a price of $29. What is your return in percent? Answer to two decimals.
Question 3 1 pts You purchase 660 shares of XYZ Co. stock on margin at a price of $25. Your broker requires you to deposit $7,808. A month later, you sell the stock at a price of $28. What is your return in percent? Answer to two decimals.
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