Rudolfo purchased 900 shares of stock for $62.20 a share and sold them ten months later...
Rudolfo purchased 900 shares of stock for $62.20 a share and sold them ten months later for $64.60 a share. The initial margin requirement on this stock is 75% and the maintenance margin is 40%. Ignoring dividends and costs, what is his holding period return?
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Rudolfo purchased 900 shares of stock for $62.20 a share and
sold them ten months later...
Allan purchased 500 shares of stock on margin for $31.75 a share and sold the shares...
Allan purchased 500 shares of stock on margin for $31.75 a share and sold the shares five months later for $34.50 a share. The initial margin requirement was 65 percent and the maintenance margin was 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return?
You purchased 1,200 shares of stock on margin for $53 per share and sold the shares...
You purchased 1,200 shares of stock on margin for $53 per share and sold the shares 3 months later for $58.60 per share. The initial margin requirement was 55 percent and the maintenance margin was 35 percent. The interset rate on the margin loan was 8 percent. You received no dividend income. What was your holding period return?
A stock was purchased for $51 a share and sold eleven months later for $54 a...
A stock was purchased for $51 a share and sold eleven months later for $54 a share. If the shares were purchased totally with cash the holding period return would be _____ percent as compared to _____ percent if the purchase was made using 70 percent margin. Ignore trading costs and margin interest. 5.56; 3.89 5.56; 7.94 5.88; 4.12 5.88; 6.69 5.88; 8.40
7) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum...
7) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum initial margin requirement of 75%. She held the stock for exactly 4 months and sold it without brokerage costs at the end of that period. The minimum maintenance margin was 55 %. If the stock price subsequently falls to $40, determine whether there will be a margin call and how much cash will be needed to top up the account and satisfy the call
Sara Sanders purchased 30 shares of Apple stock at $190.82 per share using the prevailing minimum...
Sara Sanders purchased 30 shares of Apple stock at $190.82 per share using the prevailing minimum initial margin requirement of 58%. She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period. During the 6-month holding period, the stock paid $1.49 per share in cash dividends. Sara was charged 5.4% annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial value of the transaction,...
Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 55.36 per share using the...
Marlene Bellamy purchased 400 shares of Writeline Communications stock at $ 55.36 per share using the prevailing minimum initial margin requirement of 54%. She held the stock for exactly 7 months and sold it without any brokerage costs at the end of that period. During the 7-month holding period, the stock paid $ 1.64 per share in cash dividends. Marlene was charged 7.8 % annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial...
Thomas purchased 200 shares of stock A for $11 a share and sold them more than a year later for $ 9 per share. He purc...
Thomas purchased 200 shares of stock A for $11 a share and sold them more than a year later for $ 9 per share. He purchased 700 shares of stock B for $41 per share and sold them for $53 per share after holding them for more than a year. Both of the sales were in the same year. If Thomas is in a 25% tax bracket, what will his capital gains tax be for the year? If Thomas is...
Marlene Bellamy purchased 500 shares of Writeline Communications stock at $55.02 per share using the prevailing...
Marlene Bellamy purchased 500 shares of Writeline Communications stock at $55.02 per share using the prevailing minimum initial margin requirement of 58%. She held the stock for exactly 44 months and sold it without any brokerage costs at the end of that period. During the 44-month holding period, the stock paid $1.63 per share in cash dividends. Marlene was charge 7.5% annual interest on the margin loan. The minimum maintenance margin was 25 % a. Calculate the initial value of...
6) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum...
6) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum initial margin requirement of 75%. She held the stock for exactly 4 months and sold it without brokerage costs at the end of that period. The minimum maintenance margin was 55%. If the stock price subsequently falls to $60, calculate the actual margin percentage, and indicate whether Marlene's margin account would have excess equity, would be restricted, or would be subject to a margin...
Sarah and James Hernandez purchased 210 shares of Macy’s stock at $38 a share. One year later, they sold the stock for $...
Sarah and James Hernandez purchased 210 shares of Macy’s stock at $38 a share. One year later, they sold the stock for $70.00 a share. They paid a broker a commision of $7 when they purchased the stock and a commision of $11 when they sold the stock. During the 12-month period the couple owned the stock, Macy’s paid dividends that totaled $1.72 a share. Calculate the Hernandez total return for this investment.
7) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum initial margin requirement of 75%. She held the stock for exactly 4 months and sold it without brokerage costs at the end of that period. The minimum maintenance margin was 55 %. If the stock price subsequently falls to $40, determine whether there will be a margin call and how much cash will be needed to top up the account and satisfy the call
6) Marlene purchased 100 shares of Textcom stock at $89 per share using the prevailing minimum initial margin requirement of 75%. She held the stock for exactly 4 months and sold it without brokerage costs at the end of that period. The minimum maintenance margin was 55%. If the stock price subsequently falls to $60, calculate the actual margin percentage, and indicate whether Marlene's margin account would have excess equity, would be restricted, or would be subject to a margin...
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