Question

In: Finance

Whitney just purchased 100 shares of Disney (DIS) stock for $135.00 a share. Her broker required...

Whitney just purchased 100 shares of Disney (DIS) stock for $135.00 a share. Her broker required a cash payment of $10,125, not including trading costs, for the purchase. What is her initial margin requirement for this stock?

Solutions

Expert Solution

Value of position = 135(100) = $13,500

Initial Margin = 10,125/13,500

Initial Margin = 75.00%

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

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.
Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The...
Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The initial margin requirement is 76.5%, which means the amount borrowed is $4,112. The corresponding balance sheet is below: Assets Liabilities and Equity Stock $17,500.00 Loan from broker $4,112.50 Equity $13,387.50 Total assets 17,500.00 Total liabilities and equity $17,500.00 a. Now suppose the price of the stock falls to $45 per share. What is your current margin percentage? (Round your answer to 2 decimal places.)...
You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the...
You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. Round your answer to the nearest cent (2 decimal places).
An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The...
An investor purchased 100 shares of common stock at Ghc20 per share one year ago. The company declared and paid a dividend of Ghc2 per share during the year. The investor sold the stock for Ghc21 per share after the one year holding period. Calculate the cedi return from this investment. Calculate the HPR for this investment. Partition the HPR into its dividend and capital appreciation components.
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%
The Walt Disney Company is listed as Ticker Symbol “DIS” on the New York Stock Exchange....
The Walt Disney Company is listed as Ticker Symbol “DIS” on the New York Stock Exchange. The Industry is listed under Consumer Services. Summarize in no more than 350 words the most frequently found long-term assets and long-term liabilities, as well as any unique assets or liabilities that were not common among the companies.
The Walt Disney Company is listed as Ticker Symbol “DIS” on the New York Stock Exchange....
The Walt Disney Company is listed as Ticker Symbol “DIS” on the New York Stock Exchange. The Industry is listed under Consumer Services. Determine what the company's policy is related to long-lived assets, goodwill, and other intangible assets. Identify what the company says about its annual goodwill impairment testing. Identify whether the company has any deferred tax assets and liabilities, and summarize what the company says about these items in the 10-K. Identify the disclosures related to long-term debt, leases,...
Company For This Assignment – DIS (Disney) Go to the Yahoo!Finance Web site. Enter the stock...
Company For This Assignment – DIS (Disney) Go to the Yahoo!Finance Web site. Enter the stock ticker symbol or name of the company you wish to analyze in the input field next to Get Quotes at the top of the page and click Get Quotes to open the stock's overview/main page. Review the price graph provided on the overview page. Click on 6m or 1y at the bottom of the chart to get prices on the stock for the past...
You purchased 100 shares of Express Scripts common stock on margin at $70.38 per share. Assume...
You purchased 100 shares of Express Scripts common stock on margin at $70.38 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $71.75. If the broker’s call loan rate is 2.00%, what is your return on equity? Can I please get a step by step breakdown so that I can better understand the process involved? Thank you.
You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for...
You purchased 1,000 shares of stock at $42 a share. The stock is currently selling for $45 a share. The initial margin was 70 percent and the maintenance margin is 30 percent. What is your current margin position?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT