Mary purchased 500 shares at the price of $41 using her margin account and a 50% initial margin. Since then the stock price declined to $29 per share. How much money does Mary need to deposit into her margin account to comply with the maintenance margin requirement of 35%?

Mary purchased 500 shares at the price of $41 using her margin account and a 50% initial margin. Since then the stock price declined to $29 per share. How much money does Mary need to deposit into her margin account to comply with the maintenance margin requirement of 35%?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 5BCRQ

See similar textbooks

Related questions

Q: Assume Lark purchased 100 shares of Tesla stock immediately after COVID-19 lockdowns were announced…

A: number of shares=100 Initial price= $89.01/share Current price= $486.64 R=(Vf - Vi)/Vi where, R=…

Q: David spent $625 on 30 shares in a software company. Aftor six months, the valuos of his stocks are…

A: Price of stock = 625 Number of shares purchased = 30 Current Value of stock = 4762.80 Dividend Yield…

Q: Rose Apothecary has just purchased 22% (22,000 shares) of Warner Farms, Inc. They paid $15.30/share…

A: Firm issued various securities to arrange the funds for the business operations like bonds, stock…

Q: Sara Sanders purchased 50 shares of Apple stock at $190.64 per share using the prevailing minimum…

A: since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On November 17, Tasty Foods purchased 1,000 shares (10%) of Eco-Safe Packaging's voting stock for…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: An investor bought 1,000 shares of ABC company at $15 per share. One year later, the investor sold…

A: The amount that is earned by holding an asset for a certain time period is referred to as 'Holding…

Q: ou purchased 1,500 shares of stock in Natural Chicken Wings, Inc., at a price of $43.67 per share.…

A: Given information : Total number of shares 1500 Price of stock $ 43.67 Dividends…

Q: You own 100 shares of stock of unlevered Shaan Company which has 1,000 shares outstanding. Shaan…

A: Here,

Q: in facility for a short sale, Stella sold 200 lots of TULIPS shares at a price of $7,000. Initial…

A: When you short sell the stock than you will get profit if prices goes below the selling price of…

Q: Rowena bought 100 shares of Paper Mill stock at 150 pesos per share. The broker charged her 750…

A: Share is the capital of the company that is described in units. These units could be divided into…

Q: purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50% and…

A: Margin call is received when the margin goes below maintenance margin.

Q: Assume Edward purchased 100 shares of Tesla stock immediately after COVID-19 lockdowns were…

A: The question is related to Dividend Policy. The expected return is calculated as under Expected…

Q: If Sharon Jacobs of the previous problem (I have posted the previous problem below.) is also a…

A: Financial management is one of the important areas in the business organization. The combination of…

Q: An investor purchased 500 shares of Electric Shaver Corporation stock at a price of $22.50 per…

A: Calculate the total percentage return as follows:

Q: You purchase 240 shares of stock at $39.20 per share. Several months later you sell the shares at…

A: Round lots: A round lot is a lot of stock which at leasr consist of100 shares or a large number that…

Q: John owns 5, 000 shares of stocks from Easter Union Company. The shares were purchased at ₱47.45 per…

A: Issue of shares is one of the important source of finance being used by the business. Broker charges…

Q: Mary purchased 1,000 shares of Lucky Boots for $500 per share in 2010. Since then, Lucky Boots has…

A: Number of shares purchased = 1000 Price per share = $ 500 Value of investment = 500*1000 = $ 500,000…

Q: Sam bought through her broker 200 Apex Mining common stock at $61.50/share. The broker charged her…

A: Given 200 shares are bought at $61.50 per share = 200 shares * $61.50 = $12,300 Commission at 2% =…

Q: You purchase 240 shares of stock at $37.40 per share. Several months later you sell the shares at…

A: A round lot is a lot of stock which at least consist of 100 shares or a large number that can be…

Q: How much did Mr. Chavez gain? a. Php33,567.00 b. Php34,024.00 c. Php40,274.00 d. Php65,879.00

A: Capital gain or loss refers to a method which shows the relationship between capital gain and…

Q: rrowed on margin to $10K to buy 40,000 shares of NVM stock when it was trading at 45 cents a share.…

A: Broker gives margin to the clients so that they can increase the trading volume and they can trade…

Q: good-'til-canceled order to buy 200 shares of ABC at $10 a share. ABC sold between $10.50 and $11.00…

A: The right option is 3 That the order was executed on June 7 at a price of $10.00 a share.

Q: sells 500 shares of Gold Mine Corp. short at $80 per share. The margin requirement is 50 percent.…

A: When you short sell the stock than you will make profit when prices goes down from your purchase…

Q: Mr. P. decides to short sell 10000 shares of Chegg Inc. at that time market price. was $5.6. His…

A: Calculate the amount of investment made by the the investor by multiplying the number of shares…

Q: In March of this year, Ermine felt the market had nowhere to go but down. Accordingly, she sold…

A: Generally the return is calculated by the following simple formula Return = (I + dP)/P0 Where I =…

Q: Meg bought a stock for $120/share. One year later, she sold the stock for $126.50, just after it…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: Jen owns 5,500 of the 350,000 shares of TC Inc. The company has just announced a rights offering…

A: In this question we need to compute the percentage of the firm will Jen own after the rights…

Q: Ghaith purchased 200 shares of stock at $19 using his 70% margin account. his maintenance margin is…

A: PAYMENT MADE FOR PURCHASE = NUMBER OF STOCK * PRICE PER STOCK INITIAL DEPOSIT = PAYMENT MADE *…

Q: A woman made 7 annual end-of-year purchases of $3500 worth of common stock. The stock paid no…

A: Given information: Present value of stock is $3,500 Number of years is 8 Future value is $38,000

Q: Please use excel to provide the calculation and answer Using the margin facility for a short sale,…

A: Margin call price is when the margin taken from call price is runs low below the required minimum…

Q: The company's stock was trading at $15 per share when Michelle recived a stock option grant of 3,000…

A: Employee Stock options are a type of equity compensation that is granted by companies to their…

Q: At the start of the year, you purchase 200 shares of Manor Corporation at $25 per share. During the…

A: given, p1= $25 number of shares = 200 p2= $20 dividend = $2.25

Q: Meg bought a stock for $120/share. One year later, she sold the stock for $136.50, just after it…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: Howard holds 3,000 shares in Bean, a firm with a stock price of $30. Bean has announced a dividend…

A: The investor would receive a dividend of $1.50 per share. The dividend received can be reinvested in…

Q: John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: a) Jessie B. purchases 450 shares of Smooth Sail Inc. for $50 per share at a time when the initial…

A: Margin trading is a facility which is provided by the broker to the investor that, investor can…

Q: Zinedine Zidane purchased 100 shares of Real Madrid common stock at $40 per share. Assume that the…

A: margin call: it occurs when the value of investment of the investor is below the broker's required…

Q: 500 shares of the X business that were initially priced at $19 were sold by Renée for $15 each.…

A: Given data, Original cost =$19 Sale price =$15 Purchase price =$18 The difference between the…

Q: Jeff Sellers bought 200 shares of ATL stock at $29.38. Eight months later, he sold the stock at…

A: Bottom line is an idiom used for bottom most line of the income statement which shows the net income…

Q: Dan make on the sale (e

A: Given: 200 shares of a stock=P140 the stocks at P145.50

Q: Mr. Ramon Sy has 100 SMC shares which he bought costing P13,000. He would like to sell his shares…

A: Realized gain = (sale price - Purchase price)×quantity

Q: Aisha Knox paid a total of $1,500 for 75 shares of stock. He sold the stock for $22.50 a share and…

A: Profit/Loss from the sale of share will be calculated by using the following formulae : 1. Profit or…

Q: Harry purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50%…

A: The amount hat need to deposit is calculated by subtracting the amount in the account from the…

Q: Tiffany bought a stock for $80 and company paid no dividend. At the end of the year she sold the…

A: Return on stock is equal to the sum of all the dividends earned on stock and capital gain minus the…

Q: The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January…

A: If the treasury stock is resold, offset the sale price against the treasury stock account, and…

Q: Teasler Inc. currently trades at $40 and has 9 million shares outstanding with Net Income of $12…

A: Note: As per Bartleby norms, when a question has multiple sub-parts, only first 3 sub-parts can be…

Q: Assume that when you were in high school you saved $1,000 to invest for your college education.You…

A: Part a: Total no. of shares after 2-for-1 stock split=No. of shares×2=200 shares×2=400 shares Total…

Q: Jack owns 2,000 shares of common stock in a firm with 100,000 total shares outstanding. The firm…

A: Number of shares owned by Jack=2000 Total shares outstanding=100,000 Additional shares=50,000…

Question

$1,075
		$1,325
		$825
		$560

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Laureen purchased 1,000 shares of Apple stock for $80 per share with an initial margin requirement of 65% and a maintenance margin of 40%. Assume the stock price falls to $30 per share, how much equity must Laureen contribute? $2 per share $8 per share $10 per share $12 per share
Sara Sanders purchased 50 shares of Apple stock at $190.64 per share using the prevailing minimum initial margin requirement of 55%. She held the stock for exactly 5 months and sold it without any brokerage costs at the end of that period. During the 5-month holding period, the stock paid $1.43 per share in cash dividends. Sara was charged 4.5% annual interest on the margin loan. The minimum maintenance margin was 25%. a. Calculate the initial value of the transaction, the debit balance, and the equity position on Sara's transaction. b. For each of the following share prices, calculate the actual margin percentage, and indicate whether Sara's margin account would have excess equity, would be restricted, or would be subject to a margin call: (1) $174.91, (2) $207.69, and (3) $122.18. c. Calculate the dollar amount of (1) dividends received and (2) interest paid on the margin loan during the 5-month holding period. d. Use each of the following sale prices at the end…
Lisa purchased 500 shares of ABC stock trading at $40 per share, with an initial margin requirement of 60% and a maintenance margin of 30%. At what price would Lisa receive a margin call? $20.00 $22.86 $57.14 $80.00
Ghaith purchased 200 shares of stock at $19 using his 70% margin account. his maintenance margin is 40%. At what price will Ghaith receive a margin call?
Harry purchases 1,000 shares at the price of $50 using his margin account. The initial margin is 50% and the maintenance margin is 45%. If stock price declines to $40, how much is Harry required to deposit to his margin account? $3000 $2750 $2100 $3750
On 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?
Aisha Knox paid a total of $1,500 for 75 shares of stock. He sold the stock for $22.50 a share and paid a sales commission of $49.00. What is the profit or loss from the sale?
After researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 200 shares of Best Buy. At the time of the sale, a share of common stock had a value of $140. Three months later, Best Buy is selling for $132 a share, and Sally Instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $54. What is her profit for this short transaction? Total profit after commissions?
After researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 400 shares of Best Buy. At the time of the sale, a share of common stock had a value of $160. Three months later, Best Buy is selling for $152 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $64. What is her profit for this short transaction?
Wanda Sotheby purchased 170 shares of Home Depot stock at $150 a share. One year later, she sold the stock for $55 a share. She paid her broker a commission of $44 when she purchased the stock and a commission of $51 when she sold it. During the 12 months she owned the stock, she received $138 in dividends. Calculate Wanda’s total return on this investment.
The company's stock was trading at $15 per share when Michelle recived a stock option grant of 3,000 shares. Assume all the shares vested at once when the stock price was $27 per share. On the day the shares vested, Michelle exercised her options and sold all the shares. How much did Michelle earn as a result?