What stock price will you receive a margin call

Assignment Help Financial Management
Reference no: EM13874585

You open a brokerage account on January 1 and sell short 500 shares of Apple Computer at $163.39 per share. The initial margin requirement is 50%. The maintenance margin is 30%. Disregarding interest and dividends, at what stock price will you receive a margin call?

Reference no: EM13874585

Questions Cloud

Which trade discount series gives the better deal : The list price of a car is $8760. It is available at either a 10/20/5 or a 35/30 trade discount series. Which trade discount series gives the better deal? By how much?
What is the cost of leasing : Waldrop Corporation must install $200 of new equipment in its Ohio plant. It can obtain a bank loan for 100% of the required amount at 8% interest on the loan. Alternatively, the firm can leas the equipment on a 2-year lease, the payment would be $11..
What is the required expected return for biopharma according : Biopharma is a pharmaceutical company. Biopharma’s annual stock returns have a CAPM beta of 1.25 (i.e. β =1.25). The market portfolio’s return is 13%, and the risk free rate is 5%. a. What is the required expected return for Biopharma according to th..
Share initial margin requirement : You open a brokerage account on January 1 and sell short 500 shares of Apple Computer at $163.39 per share. The initial margin requirement is 50%. Assume that Apple pays an annual dividend on December 31 of $5.50 per share. What is the margin balance..
What stock price will you receive a margin call : You open a brokerage account on January 1 and sell short 500 shares of Apple Computer at $163.39 per share. The initial margin requirement is 50%. The maintenance margin is 30%. Disregarding interest and dividends, at what stock price will you receiv..
What share price will you receive a margin call : You open a brokerage account and purchase 200 shares of Google at $443.05 per share.  You borrow 40% from your broker to help pay for the purchase.  The interest rate on the loan is 8%.  Assume the day after your stock purchase, Google announces abys..
What is the initial margin balance : You open a brokerage account and purchase 200 shares of Google at $443.05 per share. You borrow 40% from your broker to help pay for the purchase. The interest rate on the loan is 8%.  What is the initial margin balance?
What is the initial loan amount in your account : You open a brokerage account and purchase 200 shares of Google at $443.05 per share. You borrow 40% from your broker to help pay for the purchase. The interest rate on the loan is 8%. What is the initial loan amount in your account?
Create a linear program : Create a linear program that shows exactly how many circuit boards should be produced at each plant and then shipped to each warehouse in order to maximize resulting profits. Your completed model should show the optimal values of all 12 decision vari..

Reviews

Write a Review

Financial Management Questions & Answers

  Our normal actuarial notation

To accumulate $18,000 at the end of 7n years, a deposit of $5,000 is made at the end of the first 3n years and another deposit of %7,200 is made at the end of 5n years. Find where v is taken from our normal actuarial notation and v > 0.

  Develop and describe a strategic measurement

develop and describe a strategic measurement ldquoscorecardrdquo that might be incorporated with the financial measures

  Forecasting cash flows

Your company is forecasting cash flows of $15 million next year, $25 million in year 2 and $40 million in year 3. After that growth in cash flows is expected to level out at 5% per year. Your company has $150 million in marketable securities and $350..

  Important characteristics of getting a high sales price

One of the most important characteristics of getting a high sales price is high net revenue to working interest ratio. Why would a company looking to pursue an acquisition place high importance on this factor?

  What is the present value of that annuity if discount rate

An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above if the payments are received at the beginnin..

  The origination of a home mortgage loan is considered

The origination of a home mortgage loan is considered to be a

  What is the delta of a one-year call option on ragwort stock

Over the coming year Ragwort’s stock price will halve to $50 from its current level of $100 or it will rise to $200. The one-year interest rate is 10%. What is the delta of a one-year call option on Ragwort stock with an exercise price of $100?

  Opened an investment account and deposited

One year ago, the Jenkins Center opened an investment account and deposited $4,600. Today, it is depositing another $6,000 and will make a final deposit of $8,500 one year from now. How much will the firm have saved four years from now if it earns an..

  What is the annual opportunity cost of a checking account

What is the annual opportunity cost of a checking account that requires a $300 minimum balance to avoid service charges? Assume an interest rate of 3%.

  Disbursement account

Which one of the following is a disbursement account into which funds are transferred from a master account only as the funds are needed to cover checks presented for payment?

  Firm has an equity beta

A firm is valued at $8 million and has debt of $2 million outstanding. The firm has an equity beta of 1.5 and a debt beta of .60. The beta of the overall firm is:

  How a firms cost of capital may decrease

Discuss which exposure might be viewed as the most important to effectively manage, if a conflict between controlling both arises. Also, discuss and critique the common methods for controlling translation exposure - Explain why and how a firm's co..

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