Lisa Lasher buys 410 shares of stock on margin at $27 per share. If the margin...

Lisa Lasher buys 410 shares of stock on margin at $27 per share. If the margin requirement is 50 percent, how much must the stock rise for her to realize a 20-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent.

Solutions

Expert Solution

jeff jeffy answered 2 months ago

Next > < Previous

Related Solutions

Lisa Lasher buys 380 shares of stock on margin at $22 per share. If the margin...

Lisa Lasher buys 380 shares of stock on margin at $22 per share. If the margin requirement is 50 percent, how much must the stock rise for her to realize a 45-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent.

An investor buys 400 shares of stock selling at $70 per share using a margin of...

An investor buys 400 shares of stock selling at $70 per share using a margin of 40%. The stock pays annual dividends of $2 per share. A margin loan can be obtained at annual interest cost of 6%. Determine what return on invested capital the investor will realize if the price of the stock increases to $94 within twelve months. A. 33.54% B. 34.29% C. 37.14% D. 55.90% E. 83.86%

Mr. Suphi buys 100 shares of ABC stock on margin. The share price is $50 and...

Mr. Suphi buys 100 shares of ABC stock on margin. The share price is $50 and the initial margin is 50%. What is the maintenance margin on the account if the margin call is triggered at a share price of $35? Ignore the interest on the loan. b) Mr. Suphi buys 200 shares of EFG stock on margin. The share price is $60 and the initial margin is 50%. What is Mr. Suphi’s rate of return on equity if he...

You purchased 250 shares of common stock on margin for $45 per share. The initial margin...

You purchased 250 shares of common stock on margin for $45 per share. The initial margin is 60%, and the stock pays no dividend. Your rate of return would be ________ if you sell the stock at $48 per share. Ignore interest on margin. 0.132 0.238 0.111 0.208

You purchased 100 shares of common stock on margin for $150 per share. The initial margin...

You purchased 100 shares of common stock on margin for $150 per share. The initial margin requirement is 65%, the maintenance margin requirement is 40%. Find your rate of return in % if you sell the stock at $180 per share exactly 1 year later if interest rate on margin loan is 10%

You execute a margin purchase of 200 shares of a stock at $52 per share. The...

You execute a margin purchase of 200 shares of a stock at $52 per share. The initial margin requirement is 60% and the maintenance margin is 35%. a. On a per share basis, what is the minimum amount you must you put up and how much can you borrow from the brokerage house? b. If the price of the stock increases to $64 per share, what is the actual margin in your account? Assume you borrowed the...

An investor shorts 100 shares of a stock at $52 per share with initial margin of...

An investor shorts 100 shares of a stock at $52 per share with initial margin of 50% and no interest. The maintenance margin is 30%. Suppose the closing prices for the stock over the next three days is $56, $60 and $58. What are the values for margin and equity in the investor’s account at the end of day three?

Investor buys 200 shares of stock at $27.25 per share. Investor sells the stock after one...

Investor buys 200 shares of stock at $27.25 per share. Investor sells the stock after one year. 1. What is the dollar amount of gain and the percent of return if the stock is sold for $32.60 per share? How much does the yield percentage increase to if the stock received a per share dividend of $1.15 during the year? 2. What is the dollar amount of loss and percentage of return if the stock received a per share dividend...

An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the...

An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the maintance margin is 40% at what price does the investor get a margin call? Regarding the previous question, if the price declines to $70 per share whats the return to the investors equity? What if the stock price rises to $150 per share? ignore interest and transaction costs.

An investor buys $24 thousand dollars of stock at $20 per share, using 70% initial margin....

An investor buys $24 thousand dollars of stock at $20 per share, using 70% initial margin. The broker charges 5.4% APR compounded daily on the loan, and requires a 35% maintenance margin. The stock pays $0.64 per share dividend each year. If the stock is sold at the end of the year at $24 per share, what is the investor's rate of return?

Subjects