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- H4 You sell short 18 shares of Wells Fargo &Co that are currently selling at $54 per share. You post the 0.56 margin required on the short sale. If your broker requires a 0.37 maintenance margin (MMR), at what stock price will you get a margin call? (You earn no interest on the funds in your margin account, and the firm does not pay any dividends.)INV 1 3a Your analysis has indicated that the shares of Levi’s Riveting Co. are highly over-valued. To take advantage of this expectation, you decide to sell short 900 shares at $20 each. The initial margin for short sales in your brokerage account is set at 60% (i.e., 160% of the value of the short sale). The minimum margin requirement is 40%. The stock will pay no dividends during the period, and you will not remove any money from the account before making the offsetting transaction. At what price would you face a margin call?Ch. 9. The next dividend payment by Skippy Jon Jon, Inc., will be $1.08 per share. The dividends are anticipated to maintain a growth rate of 4 percent, forever. The stock currently sells for $24 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Format as a percentage as "X.X"
- INV 1 3b Your analysis has indicated that the shares of Levi’s Riveting Co. are highly over-valued. To take advantage of this expectation, you decide to sell short 900 shares at $20 each. The initial margin for short sales in your brokerage account is set at 60% (i.e., 160% of the value of the short sale). The minimum margin requirement is 40%. The stock will pay no dividends during the period, and you will not remove any money from the account before making the offsetting transaction. If the price is $24 at the end of the period, what is your margin ratio at that point?elizabeth eaarns $9.50 a share, sells for $90, and pays a $6 per sharedeviden. the stock is split two for one and a $3 pers share cash dividend is diclared. what will be the new price of the stock? if the firms total earnings to do not change, what is the payout ratio before and after stock split?Ma3. Question 7 The PX exchange uses maker/taker pricing: orders that add liquidity receive a rebate of $0.001 per share; orders that take liquidity pay $0.002 per share. Sam just entered an order to buy 100 shares limit $20. This order goes into the book. Shortly thereafter Mona enters an order to sell 100 shares, limit $19. a. What is the price paid by Sam net of maker-taker pricing? b. What is the price received by Mona net of maker-taker pricing?
- 10. Multiple Choices. Issuance of promises to pay dividends in the future (may bear interest) instead of cash. a. scrip dividend b. property dividend c. bonus issue d. dividend in kind e. liquidating dividend f. cash dividend g. stock splitQuestion 16 of 30Practice QuestionS1: The price at which a share of stock is bought or sold is called issue price. S2: The number of shares outstanding can never be greater than the number of shares issued.Select the correct response:S1 is False; S2 is TrueS1 & S2 are FalseS1 & S2 are TrueS1 is True; S2 is FalseQuestion No 01: Organization ABC Stock is traded in the Lahore Stock Exchange and has a Market Price of Rs.13. The Company has fixed the Dividend to be Rs.2 per share. The Par Value of each offer is Rs.10. You expect the Price should be Rs.13 after 2 years. As the financial specialist, you expect a Minimum Required Return of 10% because you can earn that much from a bank deposit account almost risk-free. BUT, Stocks are generally more risky investments than bank deposits SO you will only invest in risky stock IF the expected return is higher than 10% - let's say 15%. Figure the estimation of Stock Value.
- 7. Answer both questions: a) The stock of Payout Inc. will go ex-dividend tomorrow. The dividend will be $1 per share. There are 20,000 shares of stock outstanding. The market value balance sheet for Payout is below: Assets Liabilities and equity Cash $100,000 Equity $1,000,000 Fixed assets $900,000 i) What price is Payout selling for today? Explain your answer. ii) What price will it sell for tomorrow? Explain your answer. b) Now suppose that Payout announces its intention to repurchase $20,000 worth of stock instead of paying out the dividend. i) What effect will the repurchase have on an investor who currently holds 10 shares and sells 2 of those shares back to the company in the repurchase? ii) Compare the effects of the repurchase to the effects of the cash dividend that worked out in 7(a).CH6 # 1 The ABC Company has a stable dividend policy ($2 per share per year). It also has a policy of not raising new capital from the market. The policy is to invest the available funds after payment of the dividends (excess cash is invested in marketable securities). What does this imply about the use of the present value method of making investment decisions?Question No 3 (part i) (remaining part) Answer the following. i) The future earnings, dividends, and common stock price of Nabeel Inc. are expected to grow 7% per year. Common stock currently sells for $23.00 per share; its last dividend was $2.00. d) If you have equal confidence in the inputs used for the three approaches, what is your estimate of cost of common equity?
