Supposed you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up P10,000 and borrow the rest.
Q: Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000…
A: Balance sheet means where all assets , liabilities and equity are shown in proper format My margin…
Q: Suppose that you sell short 1,000 shares of Xtel, currently selling for $20 per share, and give your…
A: a. The calculation of the rate of return after one year in a short position is as follows: The…
Q: You want to take a long position on a stock. It costs $2,500 for 1,000 shares, so you deposit $1,250…
A: Computation:
Q: Lauren has a margin account and deposits R50,000. Assume the prevailing margin requirement is 40…
A: a) Formula: Number of sharesPurchase=DepositSelling price×Required margin
Q: At your discount brokerage firm, it costs $7.95 per stock trade. How much money do you receive after…
A: Discount brokerage are firms which charge lower fees to the traders as they do not provide services…
Q: Suppose you believe that National Inc.’s stock price is going to decline from its current level of…
A: Put Option: It is the contract where a right is provided to the owner to sell a certain amount of…
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: 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: Suppose you shorted 10,000 shares instead of buying at a price of 4.00. The initial margin is 60…
A: Shorted shares= 10,000 shares Price= 4.00 Initial Margin= 60% What does the account balance sheet…
Q: ear ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a…
A: A short position would be at loss if price rises.
Q: Suppose that TSLA’s current share price is $20. You buy 1,000 shares using $15,000 of your own…
A: Rate of return is percentage amount of earning after holding the shares for one year including cost…
Q: You’ve borrowed $14,000 on margin to buy shares in Ixnay, which is now selling at $56 per share.…
A: a) Working note:
Q: Suppose you invest $15,000 by purchasing 200 shares of Abbott Labs (ABT) at $40 per share, 200…
A: The question is based on the concept to calculate weight of an asset in the total portfolio, which…
Q: You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the…
A: Rate of return: A rate of return is the net gain or loss on an investment over a specified time…
Q: A firm has a Rs. 100 par value preferred stock and it has 50,000 number of preferred stocks? Its…
A: Given, Par Value of Preferred Stock = Rs. 100 Perpetual dividend (Quarterly) = Rs. 3 Yield to…
Q: The total book value of the firm's equity is $10 million; book value per share is $20. The stock…
A: Weighted Avg. Cost of Capital(WACC) is avg. cost of financing the given capital structure of the…
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: Mr. Aley bought 320 shares of Apple at $40 per share; he bought the stock at the initial margin of…
A: Sometimes, investors only pay some amount to buy the securities to broker and remaining amount is…
Q: 3. Suppose you want short 100 shares of Apple, at $ 30 per share with the initial margin 50% and the…
A: Equity consists of money which would be decided to return to a corporate debtor if all of its assets…
Q: 1. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up…
A: The Numerical has covered the concept of Margin. The Margin is calculated by using the following…
Q: An investor puts up $4,000 but borrows an equal amount of money from their broker to double the…
A: The return amount will be the difference between purchase price and interest and its selling price…
Q: You’ve borrowed $22,000 on margin to buy shares in Ixnay, which is now selling at $32 per share.…
A: Borrowed amount = $22,000 Your own equity = $22,000 Total Investment = $44,000 No. of shares bought…
Q: Suppose you want to buy 10,000 shares of Ultra Universe Company at a price of 4.00. You put up…
A: Given: Short of shares = 10,000 Price =P4 Initial margin = 60% Amount invested = P10,000
Q: You want to purchase Stock A currently trading at $50 per share. You have $10,000 of your own to…
A: Maintenance margin is margin below which we will get margin call
Q: At your full-service brokerage firm, it costs $110 per stock trade. How much money do you receive…
A: In the given question we require to compute the amount of money we will receive after selling 100…
Q: Carson Corporation stock sells for $53 per share, and you’ve decided to purchase as many shares as…
A: Stocks refer to the security that represents the ownership of the holder in the company. The stock…
Q: You have opened an account with a local broker & you placed an order for 4,000.0 shares of KLM corp.…
A: Given: Ordered placed 4000 shares @ 8 per shares The initial margin is 50% Broker’s rate = 6.0%…
Q: Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000…
A: 10,000 shares are shorted (sold) at a price of P 4.00. The cash account will get debited by the…
Q: Lauren has a margin account and deposits R50,000. Assume the prevailing margin requirement is 40…
A: Here, Margin Deposit is R50,000 Margin Requirement is 40% Current Price of Share is R35 per share
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: 1. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up…
A: given, number of shares = 10,000 price per share = P 4 total value of shares = p4 x 10,000 =…
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: Mr. Juan Dela Cruz has a margin account with a balance of P100,000. The initial margin deposit is…
A: The margin account is the account from which the account holder can purchase the security by deposit…
Q: .Suppose that you sell short 1,000 shares of Xtel, currently selling for $20 per share, and give…
A: a. Share Value=1,000 shares×$20=$20,000 Equity=$15,000 Debt=$20,000 The gain or loss on the short…
Q: . You decided to buy 100 shares of ABM Corp. Currently, it is trading at $43 per share. You think…
A: solution concept placing a limit order When we place the limit order for the purchase…
Q: An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The…
A: Value of Purchase = $10000 Stick Price = $40 per share Number of Share =10000/40 = 250 Initial…
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: You purchase 150 shares for $30 a share ($4,500), and after a year the price falls to $25. Calculate…
A: Given: Purchase 150 shares (Purchase price) =$30Price falls (share price after falls)=$25No. of…
Q: At your full-service brokerage firm, it costs $125 per stock trade. How much money do you receive…
A: In this question we need to compute the money we will receive after selling 200 shares of Time…
Q: An investor puts up $5,000 but borrows an equal amount of money from their broker to double the…
A: Rate of return: It is the net profit or loss of an investment over a specified period of the time.…
Q: If you bought 10 shares of stock at $100.00 a share on a 10 percent margin and sold it for $200.00 a…
A: The investor buys and sells the shares in the stock exchange with the help of stockbrokers. The…
Q: You sell short 400 shares of MIZ which are currently selling at $ 15 per share . You post the 30 %…
A: Shares Short =400 Short Price = $15 Total value = Shares Short * Price = 400*15 =…
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: An investor buys $ 8,000 worth of a stock priced at $ 50 per share using 60 % initial margin . The…
A: A margin call occurs when an individual buys stock using leverage and its price falls; the investor…
Supposed you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up P10,000 and borrow the rest. In the previous problem which is the first sentence, you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account
Step by step
Solved in 3 steps with 1 images
- Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000 and borrow the rest. What does your account balance sheet would look like? What is your margin? Supposed that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like?a. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000 and borrow the rest. What does your account balance sheet would look like? What is your margin? b. Supposed that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like?1. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up P10,000 and borrow the rest. What does your account balance sheet would look like? What is your margin? 2. Supposed that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like? 3. You deposited P100,000 cash in brokerage account and short sell P200,000 of stocks on margin. Later the value of the stocks held short rises to P250,000. What is your account margin in percent?
- 1. Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00. You put up P10,000 and borrow the rest. What does your account balance sheet would look like? What is your margin? 2. Supposed that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like? 3. You deposited P100,000 cash in brokerage account and short sell P200,000 of stocks on margin. Later the value of the stocks held short rises to P250,000. What is your account margin in percent? Problem 1: A class contains 30 students, Ten are Female (F) and Caviteno (C), 12 are male (M) and Caviteno; 6 are female and non-Caviteno; 2 are male and non-Caviteno A name is randomly selected from the class roster and it is female. What is the probability that the student is a Caviteno? Problem 2: If you score 85 or better on your midterm exam, then you have a 90% chance of getting 1.50 for the course. And…Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000 and borrow the rest. What does your account balance sheet would look like? What is your margin? Assets Liabilities and Account Equity 10,000 shares of MegaWorld Corporation ₱ 40,000 Margin Loan ₱ 30,000 Account Equity ₱ 10,000 Total ₱ 40,000 Total ₱ 40,000 Margin = ₱ 10,000 / ₱ 40,000 = 0.25 = 25% 2. Supposed that in the previous problem you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What does the account balance sheet look like?Suppose you shorted 10,000 shares instead of buying at a price of 4.00. The initial margin is 60 percent. What does the account balance sheet look like?
- Suppose you want to buy 10,000 shares of MegaWorld Corporation at a price of 4.00 You put up P10,000 and borrow the rest. What does your account balance sheet would look like? What is your margin?Suppose you want to buy 10,000 shares of Ultra Universe Company at a price of 4.00. You put up P10,000 and borrow the rest. This is the balance sheet and margin: Balance Sheet: Asset Amount (P) Liabilities Amount (P) Investments in Ultra Universe Company 40,000 Margin Loan 30,000 Account Equity 10,000 Total Assets 40,000 Total Liabilities & Equities 40,000 Margin = (Equity / Total Assets) = (10,000 / 40,000) = 25% QUESTION: Supposed that you shorted 10,000 shares instead of buying. The initial margin is 60 percent. What would the account balance sheet look like instead?In you cash account, you buy 100 shares of XYZ Corporation at a price of $10 per share. Two months later, XYZ pays a dividend $0.21 per share. You sell all 100 shares of XYZ three months later at a price of $12 per share. If you wanted to lever up the returns of this trade, you could have executed it in your _____ account. A) cash B) margin C) brokerage D) bank If you borrowed 50% of the upfront investment amount, your return (in percent terms) would have been _____. A) 11.10 B) 22.10 C) 44.20
- You have $30,000 in a margin account, 60% initial margin required. Suppose you buy 1,000 shares of IBM, for $50/share. Assume no dividends, and that your borrowing rate is 6.4%. What is your percentage rate of return if, in one year, IBM stock is selling for $36 per share?You have 6,000 USD in your brokerage account. You decide to short 100 shares of Apple stock AAPL which currently trade at 200. If the minimum maintenance requirement is 25%, and Apple suddenly increases 10% following a solid eanings repot, how much cash should you post to meet the margin requirement?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?