Apple’s share is $150 and Bella, Shin’s puppy, hold a total of 140 shares. If the initial margin is 55%, how much did Bella borrow from one of the kindest brokers, Diego? A. $21,000 B. $11,550 C. $9,450 D. None of the above
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Apple’s share is $150 and Bella, Shin’s puppy, hold a total of 140 shares. If the initial margin is 55%, how much did Bella borrow from one of the kindest brokers, Diego?
$21,000
$11,550
$9,450
None of the above
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- Apple’s share is $140 and Bella, Shin’s puppy, hold a total of 150 shares. If the initial margin is 45%, how much did Bella borrow from one of the kindest animal brokers (?), Diego? A. $21,000 B. $11,550 C. $9,450 D. None of the aboveAndy has borrowed $370,000 on margin to buy Lowe`s Companies Inc., which is now trading at $203 per share. With this transaction, his initial percentage margin is 35%. His broker, Shannon, states, and Andy agrees, that the maintenance margin is 25%. Based on the given information, what is the equity value in account? A. $108,301 B. $147,621 C. $199,231 D. $232,650Lara’s Inc. is currently an unlevered firm with 450,000 shares of stock outstanding, with a market price of $15 a share. The company has earnings before interest and taxes of $314,000. Lara's met with his bankers, Warne Incorporated and agreed to borrow $825,000, at 5 percent. You are an ardent investor and you currently own 20,000 shares of Lara's stock. If you seek to unlevered your position; how many shares of Lara's stock will you continue to own, if you can loan out funds at 5 percent interest? Ignore taxes in your deliberations. Kindly show all workings
- Suppose Tyler initially pays $76,000 toward the purchase of $108,000 worth of stock, borrowing the remaining balance from one of notorious brokers, Diego. In this case, Tyler’s initial percentage margin is closest to A. 70.37%. B. 60.50%. C. 39.50%. D. 29.63%. Clear my choiceSSSLimited paid a dividend of ₱434 per share last If yesterday’s last price was ₱4,650, what is the current yield on the stock? MMDEnterprise is currently selling at ₱1,780 with a dividend of ₱140. What is the current yield of the stock? Millet purchases 340 shares of De Leon Company common stock at ₱5,230 per share. A few monthslater, she sells the shares at ₱6,100. Her stockbroker charges 3% commission on round lots and 4.9% on odd lots. Compute for the following: Totalcost Proceeds Gain or loss on thetransaction Sharlene purchases 280 shares of SJS Corporation common stock at ₱6,400 per share. A few monthslater, she sells the shares at ₱7,000. Her stockbroker charges 9% commission on round lots and 5.6% on odd lots. Calculate the following: Totalcost Proceeds Gain or loss on thetransactionLast year, Luka Dončić paid $40.71 for shares of BioSteel. Afterward, he received a dividend of $1.47 per share. What is Luka Dončić’s dividend yield if, at the end of the year, BioSteel shares closed at $46.21? a. 3.61% b. 17.12% c. 13.51% d. 4.33% e. 3.97%
- Lauren has a margin account and deposits $49,994 into it. Assume the prevailing margin requirement is 40%, interest and commisions are ignored, and the Gentry Wine Corporation is selling at $35 per share. a) How many shares can Lauren purchase using the maximum allowable margin? b) What is Lauren's profit (loss) if the price of Gentry's stock 1) rises to $45 and Lauren sells the stock? 2) falls to $25 and Lauren sells the stock? c) If the maintenance margin is 30% to what price can Gentry Wine fall before Lauren will receive a margin call?Diego has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage margin is 37%. His broker, Tyler, states, and Diego agrees, that the maintenance margin is 20%. Based on the given information, what is the equity value in account? A. $200,078.45. B. $174.850.67. C. $139.134.09. D. $115,962.70.Fishwick Enterprises has 201,500 shares outstanding, half of which are owned by Jennifer Fishwick and half by her cousin. The two cousins have decided to sell 101,000 shares in an IPO. Half of these shares would be issued by the company to raise new cash, and half would be shares that are currently held by Jennifer Fishwick. Suppose that the shares are sold at an issue price of $50 but rise to $80 by the end of the first day’s trading. Suppose also that investors would have been prepared to buy the issue at $80. a. Percentage of ownership 20 % b. Stock value $4,020,000 c. Number of shares 63,125 d. Total wealth ?? million e. Cost of underpricing shares ?? million
- You have an arrangement with your broker to request 1,050 shares of all available IPOs. Suppose that 8% of the time, the IPO is "very successful" and appreciates by 111% on the first day, 80% of the time it is "successful" and appreciates by 13%, and 12% of the time it "fails" and falls by 13%. a). By what amount does the average IPO appreciate the first day? b). Suppose you expect to receive 55 shares when the IPO is very successful, 240 shares when it is successful, and 1,050 shares when it fails. Assume the average IPO price is $12. What is your expected return on your IPO investments?John owns 5, 000 shares of stocks from Easter Union Company. The shares were purchased at ₱47.45 per share and were sold at the closing price of ₱48.59. If the broker charges 3.2% of the total price, how much was the commission? a. ₱7, 773.30 b. ₱7, 772.20 c. ₱7, 774.40 d. ₱7, 775.50On March 1st, Frank opens a brokerage account and sell shorts 200 shares of Doggie Treats Inc. at $60 per share. The initial margin requirement is 50%. a. What is the margin in Frank’s account when he first sells the stock? b. The stock pays a cash dividend of $1 on March 28th, and the share price falls to $50 per share by the end of March, what is the remaining equity in his account? c. What is the monthly rate of return on his margined position?