ase use manual formula to provide the calculation and answer Kelly forms a stock portfolio worth $500,000,000 with a margin. The agreement with the securities company states that the initial margin is 50% and the margin call is 30%. The commission fee for buying transactions is 0.25% and for selling transactions is 0.35%, while the loan interest rate is 1.5% per month. Taking into account all transaction costs, calculate the ratio of debt and funds that Aisyah must prepare to increase equity i
ase use manual formula to provide the calculation and answer Kelly forms a stock portfolio worth $500,000,000 with a margin. The agreement with the securities company states that the initial margin is 50% and the margin call is 30%. The commission fee for buying transactions is 0.25% and for selling transactions is 0.35%, while the loan interest rate is 1.5% per month. Taking into account all transaction costs, calculate the ratio of debt and funds that Aisyah must prepare to increase equity i
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
Problem 11MC
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Please use manual formula to provide the calculation and answer
Kelly forms a stock portfolio worth $500,000,000 with a margin. The agreement with the securities company states that the initial margin is 50% and the margin call is 30%. The commission fee for buying transactions is 0.25% and for selling transactions is 0.35%, while the loan interest rate is 1.5% per month. Taking into account all transaction costs, calculate the ratio of debt and funds that Aisyah must prepare to increase equity if her portfolio declines to $350,000,000 in two months
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