You bought 150 shares of DIA at $89 using 65% margin. If the stock is currently...

You bought 150 shares of DIA at $89 using 65% margin. If the stock is currently trading at $80, what is the equity in your account? SHOW YOUR WORK AND EXPLAIN STEP BY STEP PLZ

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jeff jeffy answered 2 years ago

Megan bought 200 shares of stock at a price of $10 a share, using a margin...

Megan bought 200 shares of stock at a price of $10 a share, using a margin loan of 30%. The maximum margin loan allowed by the margin lender is 60%. Megan sold her shares after a year for $12 a share. Using the information above to answer THE questions Ignoring margin interest and trading costs, what is Megan’s return on investor’s equity for this investment? A. 67%. B. 29%. C. 14%. D. 10%. Ignoring margin interest and trading...

You purchase 1,000 shares MSFT stock on margin at a price of $150/share. The margin rate...

You purchase 1,000 shares MSFT stock on margin at a price of $150/share. The margin rate is 5% continuously compounded. The margin loan is $50,000. You want to analyze your potential returns under three scenarios for MSFT’s stock price over the next year: i) $120/share ii) $150/share iii) $180/share Fill in the table below to show your work. Current Value MSFT Stock Price 1-year Later $120/share $150/share $180/share Asset Margin Loan Equity % Return

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 bought 1000 shares of ABC stock on margin at the beginning of April 2012 at...

You bought 1000 shares of ABC stock on margin at the beginning of April 2012 at $4.80 per share. You deposited a 50% margin which was higher than the initial margin of 40%. The prime rate of interest was 2.5% and your broker charged 125 basis points above the prime rate on margin loan (assume simple interest rate). The stock paid a cash dividend of $0.12 per share in February and August of 2012. Your broker charged a flat fee...

You purchased 800 shares of stock for $49.20 a share. The initial margin requirement is 65...

You purchased 800 shares of stock for $49.20 a share. The initial margin requirement is 65 percent and the maintenance margin is 35 percent. What is the lowest the stock price can go before you receive a margin call? What is the lowest the stock price can go before you receive a margin call if both the initial and maintenance margins are 100%? What is the lowest the stock price can go before you receive a margin call if both...

You purchase 300 shares of HON at $89 per share on margin with 75% margin ratio...

You purchase 300 shares of HON at $89 per share on margin with 75% margin ratio (25% is financed by debt). If the price changes to $51.5 after 3 months (90 days), and the interest rate on the margin loan is 8%, what is your net percentage return on this position? Assume that your brokerage uses a 365 day convention for calculating daily interest rates, and that interest compounds daily. Enter answer in percents, positive for gains, negative for losses,...

QUESTION 7: You bought 250 shares of McWeber Inc. stock on margin. Price paid was $75...

QUESTION 7: You bought 250 shares of McWeber Inc. stock on margin. Price paid was $75 per share. The initial margin is 60%. The maintenance margin is 25%. A. What is the initial equity per share? (2 points) B. What is the loan amount per share? (2 points) C. How low can the price fall before there is a margin call? (2 points) D. Assume the price falls to $36. What is the amount of the margin call? (3 points)...

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.

The price of Apple stock is currently $96.89 and you decide to sell short 540 shares. The inital margin is 60%.

The price of Apple stock is currently $96.89 and you decide to sell short 540 shares. The inital margin is 60%.Part 1What's the minimum amount of money you must contribute to the account to satisfy the initial margin requirement?

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

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