At what stock price do you get a margin call

Assignment Help Finance Basics
Reference no: EM131951480

Question: Buying on Margin You buy 540 shares of stock that are priced at $80 a share using the full amount of margin available. The maintenance margin requirement or MMR is 35%. At what stock price do you get a margin call? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131951480

Questions Cloud

Why both the company and the union choose to start-out : There are several reasons why both the company and the union choose to start-out negotiations with the non-economic topics.
What is the value in dollars of buzz lightyear options : Buzz Lightyear, the chief executive officer (CEO) of Closet Toys was granted 10 million options. The stock price at the time of the options grant was $50.
Find the modified internal rate of return : The caffeine coffee company uses modified internal rate of return. The firm has a cost capital of 11 percent. The project being analyzed is as follows.
What nominal rate should be quoted by the bank : Suppose a true effective annual rate is 22.5%. A bank would like to quote the equivalent nominal rate that would be compounded per month.
At what stock price do you get a margin call : Buying on Margin You buy 540 shares of stock that are priced at $80 a share using the full amount of margin available.
Advise Jenny on her tax consequences : Henry, a tax resident of Australia, was a famous jazz singer who passed away recently. Advise Jenny on her tax consequences
What is the modified internal rate of return : The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of capital of 12 percent. The project being analyzed is as follows.
Calculate the operating cash flow for the project : What is the after-tax salvage value of the equipment at the end of the project's life? Calculate the operating cash flow for the project in each.
Estimate the enterprise and equity value using dcf analysis : Estimate the Enterprise and Equity Value using DCF analysis. Use the key value driver formula for the calculation of continuing value (terminal value).

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the beta for the division

As the result of stockholder pressure, RJR Nabisco is considering spinning off its food division. You have been asked to estimate the beta for the division.

  How would the firm risk be affected by the different policy

In this problem, we assume that expected sales are independent of the current assets investment policy. Is this a valid assumption? Why or why not?

  What factors influenced your choice and the amount

What factors influenced your choice and the amount of money invested in each?

  Assume you will receive 1000 at the end of year 1 what is

assume you will receive 1000 at the end of year 1. what is its present value at the beginning of year 1 if you expect

  What role do primary financial markets play in our economy

What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial.

  , assuming investors are indifferent between the two bonds

If the municipal bond rate is 4.25% and the corporate bond rate is 6.25%, what is the marginal tax rate, assuming investors are indifferent between the two bonds?

  End of the first day of trading

The offer price was $14 a share, the spread was 8 percent, and the lockup period was six months. The stock closed at $17 a share at the end of the first day of trading.

  What should be the current price of the stock

If the annual required rate of return for the stock is 20 %, what should be the current price of the stock?

  Calculate the duration gap for the anz bank

A. Calculate the duration gap for the ANZ Bank? B. Calculate the expected change in net worth for the ANZ Bank, if the forecast is accurate?

  Discuss the requirements of the employer mandate

Explain and discuss the requirements of the employer mandate.

  What is the tax effect of selling the old machine

The company's tax rate is 35% Working capital is expected to increase by $3,000 at the inception of the project, but this amount will be recaptured at the end of year five. What is the tax effect of selling the old machine?

  Determine degree of financial leverage

Illinois Tool Corporation fixed operating expenses are $1,260,000 and its variable cost ratio variable costs are as a fraction of sales is 0.70.

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