assume that an investor buys 100 shares of stock at 50 per share putting up 70%...
assume that an investor buys 100 shares of stock at 50 per share putting up 70% margin. If the stock rises to $80, how much would the investor have in equity?
Homework Answers
| Dear Student | |
| Thank you for using Chegg | |
| Please find below the answer | |
| Statement showing Computations | |
| Particulars | Amount |
| Price per share | 50.00 |
| Margin = 50*70% | 35.00 |
| Gain per share = 80 - 50 | 30.00 |
| Total equity = 30 + 35 | 65.00 |
| Investor have in Equity = 65/80 | 81.25% |
| Investor have in Equity in $ = 65*100 | 6,500.00 |
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assume that an investor buys 100 shares of stock at 50 per share
putting up 70%...
Assume that an investor buys 100 shares of stock at $35 per share, putting up a...
Assume that an investor buys 100 shares of stock at $35 per share, putting up a 73% margin. a. What is the debit balance in this transaction? b. How much equity funds must the investor provide to make this margin transaction? c. If the stock rises to $54 per share, what is the investor's new margin position? a. The debit balance in this transaction is s (Round to the nearest dollar.) b. The amount of equity funds the investor must...
Assum e that an investor buys 100 shares of stock at $46 per share, putting up...
Assum e that an investor buys 100 shares of stock at $46 per share, putting up a 65% margin. a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is s(Round to the nearest dollar.) b. The amount of equity funds the investor must provide to make this margin transaction is s. (Round to the nearest dollar)
P2.8 (similar to) Assume that an investor buys 100 shares of stock at $48 per share,...
P2.8 (similar to) Assume that an investor buys 100 shares of stock at $48 per share, putting up a 64% margin a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is s (Round to the nearest dollar)
Assume that an investor buys 100 shares of stock at $46 per share, putting up a...
Assume that an investor buys 100 shares of stock at $46 per share, putting up a 55% ma >Mthe stock besto$61 per share, what is the investor's new margin "the stock ises to sei per share, te investors new margin possonis»% Emer as a percentage and round to two dechnal places) Enter your answer n the answer box 5 8 9
Answer A and B Please Assume that an investor buys 100 shares of stock at $48...
Answer A and B Please
Assume that an investor buys 100 shares of stock at $48 per share, putting up a 58% margin. a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is . (Round to the nearest dollar.)
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An investor short sells 100 shares of a stock for S22 per share. The initial margin...
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Assum e that an investor buys 100 shares of stock at $46 per share, putting up a 65% margin. a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is s(Round to the nearest dollar.) b. The amount of equity funds the investor must provide to make this margin transaction is s. (Round to the nearest dollar)
P2.8 (similar to) Assume that an investor buys 100 shares of stock at $48 per share, putting up a 64% margin a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is s (Round to the nearest dollar)
Assume that an investor buys 100 shares of stock at $46 per share, putting up a 55% ma >Mthe stock besto$61 per share, what is the investor's new margin "the stock ises to sei per share, te investors new margin possonis»% Emer as a percentage and round to two dechnal places) Enter your answer n the answer box 5 8 9
Answer A and B Please
Assume that an investor buys 100 shares of stock at $48 per share, putting up a 58% margin. a. What is the debit balance in this transaction? b. How much equity capital must the investor provide to make this margin transaction? a. The debit balance in this transaction is . (Round to the nearest dollar.)
An investor buys 100 shares of stock selling at $76 per share using a margin of 67%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 8.6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $110 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $110...
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...
An investor short sells 100 shares of a stock for S22 per share. The initial margin is 60%. How much equity will be initially required in he account to complete this transaction? In other words what is the initial margin deposit? The initial margin deposit is s (Round to the nearest dollar.)
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