Assume you purchased 2000 shares of XYZ common stock on margin at $ 30 per share from your broker . If the initial margin is 70 % , what is the interest payment on amount you borrowed from the broker if interest rate is 9 % ?

Q: You purchased 1000 shares of IBM common stock on margin at $140 per share from your broker. If the…

A: Given: Number of shares purchased = 1000 Price = $140 Initial margin = 60%

Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…

A: Data given: Purchase price (P0)= $50 per share Dividend per share per year = $2 i.e., D1=$2,  D2= $2…

Q: An investor buys $20,000 worth of a stock priced at $25 per share using

A: Given information : Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge…

Q: ny equity capital must the investor provide to make this margin t

A: Equity capital refers to raising funds by liquidating the share of the company. Companies often…

Q: You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you deposit $1,250…

A: Computation:

Q: You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at…

A: Here, No. of Shares purchased is 100 Purchase Price of Share is $40 Dividend per share is $2

Q: Assume you purchased 500 shares of XYZ common stock on margin at $40 per share from your broker. If…

A: Initial margin is expressed in percentage  term that is the  security amount of the purchase price…

Q: An investor puts up $ 5,000 but borrows an equal amount of money from their broker to double the…

A: Given: Equity = $5,000 Borrows = $5,000 Broker charges = 7% Stock price = $25 Selling price = $28…

Q: You purchase 100 shares of stock for $42 a share. The stock pays a $2.5 per share dividend at…

A: Purchase price of stock=$42Dividend=$2.5Ending stock price=$45Inflation rate=4%

Q: On March 1st, Frank opens a brokerage account and sell shorts 300 shares of Doggie Treats Inc. at…

A: Stock: Stock is the number of shares being owned by the company. It is being segregated into two…

Q: You bought 500 shares of Facebook one year ago. The price was $300 per share. You financed 50% of…

A: Rate of return is calculated by dividing the total profit by the initial investment by the investor.

Q: Suppose a stock pays 2.5 OMR annual dividends and the rate of return required by investors is 10…

A: Please refer to the image below.

Q: Suppose that TSLA’s current share price is $20. You buy 1,000 shares using $15,000 of your own…

A: Rate of return is percentage amount of earning after holding the shares for one year including cost…

Q: You invest $ 6,000 in ABC stock . You also borrowed an additional $ 8,000 to increase your…

A: Data given: Own investment                                    = $6,000 Investment from borrowed fund…

Q: You short sold 700 shares of a stock at $25 a share. The initial margin requirement is 75 percent…

A: If the initial margin is 75%, it means 25% of the investment is financed by a loan from the…

Q: Suppose you purchase one share of the stock of Volatile Engineering Corporation at the beginning of…

A: Year Cash Flows Description 0 -36 Purchase one share for 36    (-36) 1 -28 Receive dividend…

Q: You’ve borrowed $14,000 on margin to buy shares in Ixnay, which is now selling at $56 per share.…

A: a) Working note:

Q: 6. Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a margin of 60…

A: The price at which share can be purchased by the potential shareholder is known as share price.…

Q: You bought 100 shares of Zen stocks initially selling at Php 50 with an initial margin on your…

A: Given: Particulars   Number of shares 100 Selling price 50 Initial margin 25% Interest…

Q: What is the rate of return when 30 shares of stock a, purchased for 30$/ share, are sold for $1100?…

A: Rate of Return : It is the rate of earning on the initial investment amount. It is calculated by…

Q: In many markets, all the proceeds from a short sale are deposited as collateral with the lender…

A: Here, No. of Shares Shorted is 2,000 Price of Share is $5.5 per share Collateral Value is reduced to…

Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per…

A: The annual rate of return is the annual income earned from an investment which is considered in…

Q: Six months ago, you purchased 100 shares of stock in ABC at a price of $43.26 a share. The stock…

A: Given Information: Price of 100 shares = $43.26 per share Quarterly Dividend = $0.10 per share…

Q: You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin…

A: Given data in the problem,  No. Of shares = 100 Share price while the investor short sold = $45 per…

Q: A stock sells for $15 per share. You purchase 100 shares for $15 a share (i.e., for $1,500), and…

A: A share represents a single unit in the equity share capital. Share capital is a total of shares…

Q: You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at…

A: The percentage return that an investor is earning from a particular investment in a particular time…

Q: . Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up…

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: 8 Months ago you bought 500 shares of stock on margin of $82. The initial margin requirement on the…

A: We need to calculate the initial investment. This is given by: Initial investment = 500 × $ 82 × .60…

Q: Suppose you own 1,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00,…

A: Formula: Number of shares after stock split = Outstanding shares  x split ratio. Multiplying…

Q: You purchase 280 shares of stock at $37.80 per share. Several months later you sell the shares at…

A: Total number of stocks purchased is 280 Purchase price per share is $37.80 Selling price per share…

Q: Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the…

A: a) Income = Interest * 3 times

Q: An investor buys $ 20,000 worth of a stock priced at $ 25 per share using 80 % initial margin . The…

A: Given Information: Stocks purchased - $20,000 Stock price - $25 Initial margin - 80% Broker charges…

Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin…

A:

Q: Assume you purchased 500 shares of XYZ common stock on margin at $29 per share from your broker. A.…

A: given, number of share=500price per share=$29

Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…

A: Given information: Investment : $10,000 Stock price: $40 Initial margin: 70% Broker fees : 10%…

Q: You plan to buy a common stock and hold if tor one year. You expect to receive both ₱150 and ₱260…

A: Expected Value is the average value for all possible values. Expected Value = Sum of all possible…

Q: You buy 1000 shares of XYZ at $75 per share using 50% initial margin (you buy 500 shares with your…

A: Amount of money borrowed can be calculated using following formula = Number of shares * Per share…

Q: An investor puts up $5,000 but borrows an equal amount of money from their broker to double the…

A: Rate of return: It is the net profit or loss of an investment over a specified period of the time.…

Q: If you bought 10 shares of stock at $100.00 a share on a 10 percent margin and sold it for $200.00 a…

A: The investor buys and sells the shares in the stock exchange with the help of stockbrokers. The…

Q: An investor buys $ 16,000 worth of a stock priced at $ 18 per share using 70 % initial margin . The…

A: The initial margin on an investment is the starting amount that an investor who wishes to open a…

Q: You sell short 400 shares of MIZ which are currently selling at $ 15 per share . You post the 30 %…

A: Shares Short =400 Short Price = $15 Total value = Shares Short * Price                    = 400*15 =…

Q: 25. Assume you purchased 2000 shares of XYZ common stock on margin at $30 per share from your…

A: A portion of the purchase price of a security that should be covered by the collateral or also can…

Q: An investor buys $ 8,000 worth of a stock priced at $ 50 per share using 60 % initial margin . The…

A: A margin call occurs when an individual buys stock using leverage and its price falls; the investor…

Q: Seven months ago, you purchased 400 shares of stock on margin. The initial margin requirement on…

A: The conceptual formula used: