Lisa Lasher buys 400 shares of stock on margin at $21 per share. If the margin...

Lisa Lasher buys 400 shares of stock on margin at $21 per share. If the margin requirement is 70 percent, how much must the stock rise for her to realize a 40-percent return on her invested funds? (Ignore dividends, commissions, and interest on borrowed funds.) Round your answer to the nearest cent.

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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.

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.

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%

You short sold 400 shares of a stock at $51 a share. The initial margin is...

You short sold 400 shares of a stock at $51 a share. The initial margin is 50% and the maintenance margin is 25%. What is the amount of your liability for this transaction as initially shown on your account balance sheet? Select one: a. $7,650 b. $5,100 c. $15,300 d. $10,200 e. $20,400 The answer is d or e? what does it mean initial transaction? The first transaction that is shown on the Liability and Equity?

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?

Your Margin account have $400 in cash. Price of the stock is $10 per share. Earlier...

Your Margin account have $400 in cash. Price of the stock is $10 per share. Earlier bought a stock with 50% margin allowed by your broker, and use full margin. The 50% margin: 80 shares can be purchase and $800 is value of your account after the purchase. Now, suppose the broker issues margin call if margin % fall to 25%. The 25% margin: 160 shares can be purchase, $300 is value of your account after the purchase, and stock...

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