Julie Baskoff has sell short 300 shares of Watercraft Industries at 85 on margin. The leverage ratio is 1.66667 and her broker requires a 35% maintenance margin. If price went up 15% dividends is $1.2 and interest is 0.05 What is account value What is the new equity at what price there will be a margin call?WHAT IS YOUR RETURN

Julie Baskoff has sell short 300 shares of Watercraft Industries at 85 on margin. The leverage ratio is 1.66667 and her broker requires a 35% maintenance margin. If price went up 15% dividends is $1.2 and interest is 0.05 What is account value What is the new equity at what price there will be a margin call?WHAT IS YOUR RETURN

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 5P

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