What would be the maintenance margin if a margin call

Assignment Help Financial Management
Reference no: EM13722772

Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60?

Reference no: EM13722772

Questions Cloud

Tax bracket invests in the preferred stock : A corporation in a 34% tax bracket invests in the preferred stock of another company and earns a 6% pre-tax rate of return. An individual investor in a 15% tax bracket invests in the same preferred stock and earns the same pre-tax return. The after t..
Pension plan is obligated to make disbursements : A pension plan is obligated to make disbursements of $1.7 million, $2.7 million, and $1.7 million at the end of each of the next three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how..
What is the duration if the yield to maturity : Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.2%. What is the duration if the yield to maturity is 10.2%?
Construct a price-weighted index : You construct a price-weighted index of 78 stocks. At the beginning of the day the index is 9,364.36. During the day, 77 stock prices remain the same, and one stock price increases $4.30. At the end of the day, your index value is 9,417.95. What is t..
What would be the maintenance margin if a margin call : Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60?
Account before making the offsetting transaction : Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period, and you did not remove any money..
Considering the purchase of a new cookie oven : Mom’s Cookies Inc. is considering the purchase of a new cookie oven. The original cost of the old oven was $30,000; it is now five years old, and it has a current market value of $13,333.33. The old oven is being depreciated over a 10-year life towar..
Interest on margin : You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest ..
Considering introducing a new toaster into the market : General Electric is considering introducing a new toaster into the market. The toaster is targeted towards interior decorators as opposed to end consumers. As such, there are 3,000 decorators that are relevant to this project. On average, each decora..

Reviews

Write a Review

Financial Management Questions & Answers

  Determine ratios relating to profitability and liquidity

Determine suitable ratios relating to profitability, liquidity, efficiency and gearing.

  Explain what kinds of real estate investment vehicles exist

Despite the crash of 2008 and 2009, real estate remains a solid investment over time. Why might this be the case? What is it about real estate that makes it a good investment? What kinds of real estate investment vehicles exist

  Maximization of shareholder wealth

Maximization of shareholder wealth

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

  What complications do class action suits present when

case analyses select two court cases from different chapters from the list below and respond in writing to the case

  Why would an analyst use the modified du pont system to

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain

  What will be cost of equity of xyz

What is XYX's cost of equity before the change in capital structure and what will be cost of equity of XYZ under the new capital structure?

  What is the cost of goods sold for lambda corporation

Lambda Corporation has current liabilities of $420,000, a quick ratio of 1.5, inventory turnover of 4.0, and a current ratio of 3.0. What is the cost of goods sold for Lambda Corporation?

  The colin powell paper

The Colin Powell paper.

  Whats the accounts receivable investment

Determine the projects cash flows for years t=0 to t=10 and what's the accounts receivable investment How many times a year will the firm turn over its inventory?

  What is the efn to achieve the projected growth rate

What is the EFN to achieve the projected 50% growth rate (change the Notes Payable, Long-term debt, and common equity to make the balance sheet balanced)?

  Kti you expect kt industries kti will have earnings per

you expect kt industries kti will have earnings per share of 3 this year and expect that they will pay out 1.50 of

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