Mr. Juan Dela Cruz has a margin account with a balance of P100,000. The initial margin deposit is 50% and ABC Corporation is currently selling at P100 per share. a.      How many shares can Mr. Juan Dela Cruz can buy? b.      What will be Mr. Juan Dela Cruz profit if the ABC Corporation’s price increase to P120? c.       If the maintenance margin is 25%, to what price can ABC Corporation stock price fall before Mr. Juan Dela Cruz receives a margin call?

Q: The owners of Sitty Inc need a return of 12% pa. The current performance of the firm leads to the…

A: 1 : The 12% return if the share price is 22/share = 22 * 12% = 2.64 That means on investing 22…

Q: You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per…

A: a.Calculation of Current Margin:The current margin is 42.86%.Excel Spreadsheet:

Q: Assume that a company’s shares have an intrinsic value of P125 per share and are trading at P130.…

A: Intrinsic value = P 125 Required return = 6% Growth rate = 4%

Q: Bates, Inc. pays a dividend of $1 and is currently selling for $32.50. If investors require a 12…

A: We need to compute the growth rate in the given question. We can compute the growth rate using…

Q: You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year,…

A: Formulas:

Q: Rauch Inc.’s current stock price is $2 per share and it has 300 million shares outstanding. The book…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Q: Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to…

A: We need to compute percentage return due to price rise or fall.

Q: USE THE FOLLOWING INFORMATION FOR THE PROBLEM (1) You decide to sell short 200 shares of XCorp…

A: Short selling is a trading or investing technique that bets on the price of a stock or other…

Q: You bought 50 shares of Jollibee Food Corp. at Php 25 per share. The  amount of dividend paid during…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: You want to purchase some share of JJ Farms stock but need a rate of return of 17.5 percent to…

A: If the company pays consistent dividend per year then the share value will be computed by dividing…

Q: You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share.…

A: a) The person X might not receive a margin call. Person X hired out $20000 and with another $20000…

Q: ow much are you willing to pay for one share of  Group stock if the company just paid an OMR 0.95…

A:

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: Schwifty Enterprises has currently 20 million shares trading in financial markets at a price of £10…

A: Ex rights price per share = ((New shares * issue price) + (Old shares * market price))/ (New shares…

Q: Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The initial…

A: A margin call is made when an investor's equity, expressed as a percentage of the total market value…

Q: Computer Corp. reinvests 60% of its earnings in the firm. The stock sells for $50, and the next…

A: As per Dividend Discount Model, Current Price = Dividend / (discount rate - growth rate)

Q: Duke Energy currently pays a dividend of about $1.64 per share and sells for $27 a share. If…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: Masetti Company’s stock has a required rate of return of 11.50%, and it sells for $25.00 per share.…

A: Given Data: Required rate of return = 11.50% Selling price of share = $25 per share growth rate =…

Q: Salsa Inc. estimates that this year’s earnings will be $75 million. There are 12 million shares…

A: a) Earning per share = Yearly earnings / Number of shares = 75,000,000 / 12,000,000 = $ 6.25…

Q: • XYZ Corp. issues preferred stock that pays a dividend of Rs. 5.50 forever. Investors could invest…

A: A financial asset is tradeable security that can be purchased or sold in a financial market. The…

Q: A company is planning an IPO. Its underwriters have said thestock will sell at $50 per share. The…

A: INTRODUCTION:

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: . 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: A corporation has 2 million shares selling at a price of 30 lei per share. The current debt ratio of…

A: The weighted average cost of capital refers to the combined and composite cost of different sources…

Q: Damai Bhd’s expected earnings after taxes (EAT) is RM300 million. The current market price of its…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: You are selling short 1000 shares of company A, which is currently selling its shares for…

A: When shares are sold on a short sale, it means that the transaction is effected by using shares…

Q: Swallow shares are currently selling for $29.80 and the company recently paid a dividend of $0.80…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000…

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

Q: 16) You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Willie's Western Corp. has outstanding nonconvertible preferred stock (cumulative) that pays a…

A: The amount to be paid for the 100 shares will be the price of a preferred share multiplied by 100.

Q: Abel, Inc. just paid a dividend of $3.0 per share and you think they will continue to pay $3.0 per…

A: Since there is no growth rate that is no growth in dividend price of stock = Dividend / Cost of…

Q: (a) What actions that shareholders can take to ensure that management's and shareholders interests…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: This year, Hope Corporation paid a dividend of $0.50 per share.  The company expect dividends to…

A: Value of share price = [D0 x (1 + g)]/(r - g) D0 = Current dividend g = Growth rate r = required…

Q: What is the correctly valued offer price, rounded to the nearest penny? How much cash will Zang…

A: Offer Price: It refers to the stock price set by an investment bank during the process of initial…

Q: You have a margin account and deposit Rs.90,000. Assuming the prevailing margin requirement is 20%,…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: ABC Co. believes that XYZ Corporation’s stock price is going to decline from its current level of…

A: The put option is the option that gives the buyer the choice but not the obligation to sell the…

Q: A. Torch Industries can issue perpetual preferred stock at a price of $55.00 a share. The stock…

A: A combination of the long-term debts and different types of stocks to raise funds for the business…

Q: Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL…

A: To determine the current price of one share today, we first need to to determine the growth rate and…

Q: 1. Ken is planning to sell his shares in a company. The dividene P85.00 per share, and the stock…

A: The formula for the calculation of current yield of stock is as follows: Current yield of…

Q: Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL…

A: Note: It is a situation where multiple sub-parts have been asked, so we are allowed to solve the…