You've borrowed $27,392 on margin to buy shares in bxnay, which is now selling at $42.8 per share. You invest 1280 shares. Your account starts at the initial margin requirement of 50% The maintenance margin is 35% Two days later, the stock price changes to $49 per share. a. Will you receive a margin call? O Yes ONo b. At what price will you receive a margin cal? (Round your enswer to 2 decimel pleces.)

Q: An investor buys 100 shares of Altria at $82 per share on margin. The initial margin requirement is…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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

A: Formulas:

Q: Wayne, Inc.'s outstanding common stock is currently selling in the market for ​$54. Dividends of…

A: Here, Market Price of Share is $54 Last Dividend Per Share is $3.16 Return on Equity is 35%…

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: A customer bought 500 Boeing shares at $30 a piece with 50% initial margin and 35% maintenance…

A: Initial Margin is used to be paid upfront when we buy Shares under future call. Additional margin is…

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: A stock trades at a price of $33.30 on July 1. On that day, a one year T-bill has a yield of 10…

A: Short position will be profitable if price of asset falls.

Q: On January 1, you sold short 100 shares of XYZ stock at $20 using a 50% initial margin. The interest…

A: Given, Stock XYZ sold at = $20 Initial margin = 50% Interest rate = 10% annually Bought stock at =…

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: You've just opened a margin account with $20,000 at your local brokerage firm. You instruct your…

A: 1) Computation:

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

A: Computation as follows: Hence, the value of share is R 47.33. The present market price of share is…

Q: You use a broker to increase your available capital for investing into the shares of Globe Plc from…

A: Maintenance margin is the minimum amount which the investor must maintain in its account. Margin…

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: The Hold Up Bank has issued 40,000,000 shares of preferred stock. Each share pays a $2.00 quarterly…

A: Cost of preferred equity = Dividend/share price

Q: On March 1st, Frank opens a brokerage account and sell shorts 200 shares of Doggie Treats Inc. at…

A: The margin requirement is the minimum amount that the investor needs to keep in the margin account.…

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…

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

Q: As the winner of a contest, you are now CFO for the day for Maguire Inc. and your day's job involves…

A: Given Information : Current selling price for common stock = $45.00 Dividend = $2.75 Payout ratio =…

Q: 8 Months ago you bought 500 shares of stock on margin of $82. The initial margin requirement on the…

A: We need to calculate the initial investment. This is given by: Initial investment = 500 × $ 82 × .60…

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: 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: An investor buys $20,000 worth of a stock priced at $25 per share using 80% initial margin. The…

A: Purchase worth = $20,000 Price of stock = $25 Initial margin = 80% Broker charge = 5% Maintenance…

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 $ 20,000 worth of a stock priced at $ 25 per share using 80 % initial margin . The…

A: Given Information: Stocks purchased - $20,000 Stock price - $25 Initial margin - 80% Broker charges…

Q: You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin…

A:

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: 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: A speculator sells a stock short for $71 a share. The company pays a $2.50 annual cash dividend.…

A: Computation:

Q: a. An initial margin requirement is 54% and maintenance margin of 48%. An investor buys GPH, 9500…

A: Information Provided: Initial Margin Requirement = 54% Maintenance Margin = 48% Shares bought =…

Q: An investor buys $ 16,000 worth of a stock priced at $ 18 per share using 70 % initial margin . The…

A: The initial margin on an investment is the starting amount that an investor who wishes to open a…

Q: Recently, yoU sold 1200 shares of stock for $76750. The sale was a short sale with an initial margin…

A: The margin on the shares refers to the charges and amount kept with the broker for the purchase and…

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

A: Dividend growth model is the valuation model that calculates the fair value of the stock on the…

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

A: Formulas:

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

A: Calculation of value of the stock: Answer: Total value of stock is R47.33

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

A: The ratio which denotes the percentage of earnings which should be paid as dividend is known as…

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…

Q: You sold short 200 shares of Stock B at $25 per share.  You have put additional $2,500 to meet the…

A: Here, Price of the Stock B is $25 No. of Shares are 200 Initial Margin Requirement is $2,500…

Q: Seven months ago, you purchased 400 shares of stock on margin. The initial margin requirement on…

A: The conceptual formula used:

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…