User Account

All Pages

What is your net equity value

Assignment Help Financial Accounting
Reference no: EM132971982

Question - You have $40,000 in your brokerage account. You want to use margin and buy as many as DIS shares as possible. You obtain the following information from your brokerage.

Equity $40000

Initial margin 50%

Maintenance margin 20%

Interest Rate 2%

DIS Today $200

DIS After one year $180

What is the maximum number of shares you can purchase in this margin account today?

Immediately after this purchase, how far can the DIS price drop before you receive a margin call?

Suppose you didn't make any transaction, and there is no margin call during this year. After one year, what is your liability to the brokerage?

After one year, how far can the price drop before you receive a margin call?

What is your net equity value ($) in your brokerage account for keeping this position for one year if DIS price is $180 at the end of the year?

Reference no: EM132971982

Questions Cloud

Compute the yards of fabric that ceasar needs to purchase : The expected yards of fabric needed for sales is 144,000. Compute the yards of fabric that Ceasar needs to purchase
Determine the format and content type : View two to three podcasts on socialmediaexaminer.com and determine the format and content type. Was the podcast successful in getting its message across? Why o
Four strategies of business strategies overblown : Are the four strategies of business strategies overblown?
What was the adjusted bank statement balance : The bookkeeper recorded a $1800 cheque as $17,100 in payment of the current month's rent. What was the adjusted bank statement balance
What is your net equity value : What is your net equity value ($) in your brokerage account for keeping this position for one year if DIS price is $180 at the end of the year
Accelerate step of the implementation roadmap : 1. What should be used to reinforce the basics in the accelerate step of the Implementation Roadmap?
How much will internal failure costs change : How much will internal failure costs change if the internal product failures are reduced by 40% with the new procedures
High priority types for business : "Financial risk is one of the high priority types for every business". Discuss
Describe lofical incrementalism : Describe lofical incrementalism as an approach to change management

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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