What price will you receive a margin call

Assignment Help Financial Management
Reference no: EM13846282

You buy 400 shares of stock at a price of $64 and an initial margin of 50 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM13846282

Questions Cloud

Present value if the payments are an annuity due : Suppose you are going to receive $13,500 per year for five years. The appropriate inerest rate is 8.4 percent. What is the present value of the payments if they are in the form of an ordinary annuity and what is the present value if the payments are ..
The price-weighted index : Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?
Fixed rate mortgage to buy new home : You need a 30-year fixed rate mortgage to buy a new home for $290,000. Your mortgage bank will lend you the money at a 5.85 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,300, so you offer to pay off any rema..
What is annualized return on investment : Suppose you buy stock at a price of $78 per share. Four months later, you sell it for $83. You also received a dividend of $.52 per share. What is your annualized return on this investment?
What price will you receive a margin call : You buy 400 shares of stock at a price of $64 and an initial margin of 50 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call?
About the geometric return : Your grandfather invested $1,000 in a stock 47 years ago. Currently the value of his account is $318,000. What is his geometric return over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal plac..
Enter variance as decimal and standard deviation : The rate of return on Cherry Jalopies, Inc., stock over the last five years was 23 percent, 11 percent, -5 percent, 7 percent, and 10 percent. Over the same period, the return on Straw Construction Company’s stock was 16 percent, 24 percent, -6 perce..
Established company with a traditionally based pay system : Assume you work for an old established company with a traditionally based pay system. Would you rather have a seniority-based pay system or a merit-based pay system and explain why?
Bond issued-what is the quoted annualized coupon rate : You are considering buying a bond issued by General Motors with exactly 5.5 years remaining to maturity that just paid a coupon yesterday. It rained on your paper this morning so you do not know what the coupon rate is. However you are able to see th..

Reviews

Write a Review

Financial Management Questions & Answers

  Capital budgeting criteria-ethical considerations

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. Calculate the NPV and IRR without mitigation. Round your answers to two decimal ..

  What is the net present value and internal rate of return

What is the Net Present Value (NPV) and Internal Rate of Return (IRR) of spending $350 today on an energy efficient appliance which will save you $150 a year for the next three years assuming you could invest this money elsewhere and earn 10%?

  What is the projects discounted payback period

A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places.

  This case is intended to be an introduction to the various

this case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the

  Holding other variables constant-decrease in dividend growth

Holding other variables constant, a decrease in the dividend growth rate would a) increase stock price, b) decrease stock price, c) have no effect on stock price, d)more information is needed to answer the question.

  What are the benefits of restructuring

What are the benefits of restructuring and please provide two real life examples. Discuss the objectives of corporate governance and why this has led to increased costs for publicly traded companies. What are the key elements of business valuations a..

  Maximizing profits and minimizing losses

Create a report that includes a discussion and analysis regarding how such a supplier makes such a determination in order to maximize the firm's profits. Include in your response:

  These individuals has realized income from reduction in debt

Sally and Ed each own property with a fair market value less than the amount of the outstanding mortgage on the property and also less than the original cost basis. They each were able to convince the mortgage holder to reduce the principal amount on..

  What is the required yearly savings

How much will the short fall amount to at the beginning of the retirement period and what lump sum will she need at the beginning of the retirement period?

  Biggest environmental challenges of the future

Explain in detail some of the biggest environmental challenges of the future for healthcare financial managers and provide an example of a financial report and then explain in detail the steps in the financial analysis process.

  Suppose that put options on a stock with strike prices

Suppose that put options on a stock with strike prices $45 and $55 cost $5 and $9, respectively. Use these options to create a bear spread. At what stock price at maturity will you break even? In other words, at what stock price, will you make $0 pro..

  Clarify the NAL and maximum lease payment

The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $2.7 million in annu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd