Suppose you recently performed a short sale on IBM stock at $174/share. Initial margin 55%, maintenance margin 35%. Suppose after the short sale, IBM stock price immediately increasesto $200/share. Will there be a margin call? Show all margin calculations.
Q: 4. Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for…
A: The objective of this question is to calculate the Yield to Maturity (YTM) for a Microsoft, Inc.…
Q: ay N will receive $100,000 of taxable revenue from a client. Use Appendix A and Appendix B Required:…
A: NPV is the difference in present value of cash flow and initial investment of project based on time…
Q: The balance sheet for the Capella Corporation is as follows: Assets Liabilities and Shareholders'…
A: Net working capital is difference between the current assets and current liabilities. In calculation…
Q: The Conceptual Framework The IASB's Framework for the preparation and presentation of financial…
A: The purpose of the IASB's Framework is to guide the development of standards that are…
Q: 1. In a bank account that pays interest 8% p.a, what should you deposit now to have a balance of…
A: NOTE: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered…
Q: A nonexempt, salaried worker who received $40,000 in annual compensation for a 35-hour standard…
A: For example, $40,000 / 52 = $769.23
Q: La Cipolla Company is considering all Year 0 1 2 3 4 5 Cash Flow in $ (450,000) 75,000 210,000…
A: Payback period is the amount of time to recover initial investment. Payback period = Initial…
Q: In saving for a future major purchace, Oksana has been making uniform deposits of $4,000 per year in…
A: Annual deposits = $4000Interest rate from period 1 till 3 = 8%Interest rate from period 4 till 5 =…
Q: Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to…
A: FirmBetaDebtEquityiRobot0.92$0$3,140Middleby's1.87$756$7,470National Presto0.12$0$827Newell…
Q: QUESTION 5 You own two investments, A and B, that have a combined total value of $17,400.00.…
A: The PV of an investment refers to the combined value of the investment's cash flows assuming that…
Q: Lockheed Martin has secured a satellite launch contract from a European communications company that…
A: IRR Internal Rate of return refers to the percentage or rate at which the overall cost of investment…
Q: McCann Company has identified an investment project with the following cash flows. Year 1 234 Cash…
A: Cash Flow for Year 1 = cf1 = $900Cash Flow for Year 2 = cf2 = $1000Cash Flow for Year 3 = cf3 =…
Q: How much money will be in the account after 7 years? £ Assuming 365 days in a financial year, how…
A: Simple interest is a simple method to figure out how much interest will accrue on a principal amount…
Q: QS 24-12 (Static) Net present value analysis with salvage value; no present value calculations LO P3…
A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: Fuente, Incorporated, has identified an Investment project with the following cash flows. Year Cash…
A: Future Value -The temporal value of money operates on the straightforward tenet that a dollar spent…
Q: (Related to Checkpoint 9.3) (Bond valuation) Calculate the value of a bond that matures in 12 years…
A: Bonds are debt instruments issued by governments or businesses to raise money, providing investors…
Q: The most recent financial statements for Martin, Inc., are shown here: Income Statement: Sales $24,…
A: External funding required is the fund required to meet the projected or growing sales for the next…
Q: A 10-year T-Bond can be stripped into 20 separate securities. O Yes O No
A: Here in the question we have to a 10 year T-Bond we have to find ou can it be stripped into 20…
Q: a-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in…
A: The coefficient of variation is a tool for evaluating the relative risk of various investments or…
Q: April Stigum will receive a 20-year annuity of $20,000 annually, beginning six years from today. In…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Describe a current or historical M&A deal that faced regulatory scrutiny. Discuss how the deal…
A: The question is asking for a description of a merger and acquisition (M&A) deal that faced…
Q: Heron Corporation is planning to add manufacturing capacity by installing new high-tech machines.…
A: Net present value is a concept of finance, where it is used to determine which project is more…
Q: B&B has a new baby powder ready to market. If the firm goes directly to the market with the product,…
A: Net present value refers to the measure of capital budgeting that helps to evaluate the…
Q: Find the expected payback for a game in which you bet $88 on any number from 0 to 499. If your…
A: The objective of the question is to calculate the expected payback of a game where you bet $88 on…
Q: Assume that a bank has assets located in Germany worth €150 million earning an average of 8 percent.…
A: Exchange rate:An exchange rate represents the rate at which one currency may be exchanged for…
Q: ?5. Bond yields Coupon payments are fixed, but the percentage return that investors receive varies…
A: Coupon rate = 9%Time till maturity =18 yearsPar value = $1000Market price = $1010.35Call years=…
Q: A client's child will be attending college in 5 years. Assume current tuition and fees are $46, 142,…
A: The present value of money refers to the concept that a dollar received in the future is worth less…
Q: Calculate the durations and volatilities of securities A, B, and C. T
A: The duration quantifies how sensitive a bond's or fixed-income security's price is to fluctuations…
Q: What is the future value (in $) of an annuity of $4,634 for 15 years if the discount rate is 5.79…
A: Future value refers to the compounded value of the future cash flows for the given period of time…
Q: Nokela Industries purchases a $ 38.8 million cyclo-converter. The cyclo-converter will be…
A: Depreciation and its tax shield do not affecct the cash flows directly but it have an indirect…
Q: A company is considering a project that has an asset beta of 0.76. The company's debt-to- capital…
A: We must apply the following formula in order to get the project's beta:…
Q: Use the following corn futures quotes: Contract Month March May July September Open 455.125 467.000…
A: Size of contract=5000Number of contract=16Purchase price=472.50Selling price=462.25
Q: Bao and Mary Jane Lee have a yearly income of $93 comma 842 and own a house worth $127 comma 900,…
A: The objective of this question is to calculate the net worth of Bao and Mary Jane Lee. Net worth is…
Q: Ski and Board are two identical firms of identical size operating in identical markets. Ski is…
A: EPS refers to the measure of the company's profitability, which is calculated by dividing the net…
Q: You are considering buying a home with an asking price of $300,000. Since the market is hot, you…
A: A mortgage refers to a covered loan borrowed for the purchase or maintenance of a property with the…
Q: Required information Assume you pay the reduced amount of $4,405 for a corporate stock that has a…
A: Present value:A financial concept known as "present value" shows how much a future cash flow or…
Q: What is an interest-rate futures contract? How does it differ from an interest-rate forward…
A: Since you have posted multiple independent questions, according to the guidelines, only the first…
Q: Which of the following is the EVC of new product X?
A: Let me state the given data, Reference product YNew product XProduct price400EVCStartup…
Q: James Clark is a foreign exchange trader with Citibank. He notices the following quotes: Spot…
A: Spot exchange rate = USD1.2051/CHFSix-month forward exchange rate = USD1.1922/CHFSix-month $…
Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…
A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: A 6.90 percent coupon bond with 23 years left to maturity is priced to offer a 5.5 percent yield to…
A: Bond valuation aims to ascertain a bond's intrinsic value. It entails determining the present value…
Q: 1 D = {(1- (₁²+)²) PV(C, r, T) = - C PV (C,r, g, T): - r-g g (1-(1+8)) = (1+ APR)* k 1. Growing…
A: First payment = $ 4000Growth rate = 1%Interest rate = 2.50%No. of payments = 20To find: a) The loan…
Q: If the intrinsic value of a stock is greater than its market value, which of the following is a…
A: Intrinsic value of a stock means the present value of all the future dividends. It is the current…
Q: Two securities, A and B, are available for trading. Prices (at t=0) and future payoffs (at t=1) in…
A: The price of Security A at t=0 is $55.The price of Security B at t=0 is $65.Assume that both states…
Q: Suppose you enter into a short 6-month forward position at a forward price of $100. What is the…
A: Question 3.Forward price = $100Underlying price = $150Question 4. Forward price = $50Underlying…
Q: you are scheduled to recieve $40,000 in two years. When you recieve it, you will invest it for 9…
A: Amount received in 2 years = $40,000Interest rate = 6%Number of years = 9 years
Q: A 7.5 percent coupon bond with 13 years left to maturity is priced to offer a 6.25 percent yield to…
A: Bonds are debt securities issued by governments, municipalities or companies to raise money.…
Q: What annual interest rate wouldyou need to earn if you wanted a$600 per month contribution togrow to…
A: The objective of the question is to find out the annual interest rate required for a monthly…
Q: Consider a portfolio that is long 11,000 units of a foreign currency and short 6 forwards on that…
A: The term "foreign currency" describes the money used in nations other than one's own. Every nation…
Q: While Cash is a safe and easy store of funds, holding cash is still not without its risks and costs.…
A: The question is asking to identify the potential risks and costs associated with holding cash. The…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance margin. The stock price declined to $14. What is the actual margin now? If he receives a margin call, how much money the customer would’ve needed to deposit to avoid forced sell?You invest $10,000 in a long position in a stock priced at $44 per share. Intial margin is 70% and maintenance margin is 30%. If price drops to $33, have you triggered a margin call? What is your margin call at $33?You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $105 per share. a. What is the current margin and will you recieve a margin call? b. How low can the price of Baidu shares fall before you recieve a margin call?
- You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $105 per share. a. What is the current margin and will you recieve a margin call? b. How low can the price of the shares fall before you recieve a margin call?A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance margin. The stock price declined to $14. What is the actual margin now? If he receives a margin call, how much money the customer would’ve needed to deposit to avoid forced sell? Answer step by step. Do all calculation. Answer must be correct. Use word file for answerSuppose the risk-free rate of return is 4.5 percent and the market risk premium is 8 percent. Stock U, which has a beta coefficient equal to 1.3, is currently selling for $30 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $3.00 per share. Is Stock U correctly priced? Explain. Do not round intermediate calculations. Round your answers to one decimal place. The required rate of return, that is %, is the expected rate of return, that is %, which means that .
- Assume that you are a consultant to Broske Inc., and you have been provided with the following data: the next expected dividend is $0.67; the current market price is $42.50 and the constant growth rate for the dividends is 8.00% Based on the information given what is the cost of equity?Show the monthly return of the company and S&P 500 in the same graph. What is your interruption interpretation of the change of return of the company comparing with the market index? Calculate the monthly standard deviation and return for both the company and S&P 500. What is your interruption of the risk and return of the company comparing with the market index? S&P 500 last 6 months : Date Open High Low Close* Adj. close** Volume 01 Apr 2022 4,540.32 4,593.45 4,381.34 4,392.59 4,392.59 37,024,560,000 01 Mar 2022 4,363.14 4,637.30 4,157.87 4,530.41 4,530.41 100,978,320,000 01 Feb 2022 4,519.57 4,595.31 4,114.65 4,373.94 4,373.94 73,167,790,000 01 Jan 2022 4,778.14 4,818.62 4,222.62 4,515.55 4,515.55 73,279,440,000 01 Dec 2021 4,602.82 4,808.93 4,495.12 4,766.18 4,766.18 68,699,830,000…The current market price for ABC is $70 per share. Initialmargin is 50%, maintenance margin is 35% and there is no margininterest. 1) You believe the stock price will decrease over the nextyear and wish to trade exactly one round lot. What trade should youmake ? How much margin would you have to post to youraccount ? At what price would you receive a margin call? 2) Suppose you are correct and the stock falls to $64 pershare at the end of the year. What is your percentage return onequity for this trade
- Suppose a firm is operating in 2 periods. The shareholders are expecting to receive $100,000 economic profits (per share of stock) in period 1 and $120,000 (per share of stock) in period 2. Given the required rate of return is the same in both period, which 0.05 and the real option value is $50,000. What is the current value of a share of stock? (Report your answer with 2 decimal points)You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share.a. Will you receive a margin call?b. How low can the price of Ixnay shares fall before you receive a margin call?Masetti Company’s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Masetti Company’s dividend is expected to grow at a constant rate of 7.00%. What was the last dividend paid by the Company? For this problem, not only you should show your work, you are required to explain your approach in writing as well.