You wish to buy 1,000 shares of a stock that is currently selling for $25/share....
50.1K
Verified Solution
Link Copied!
Question
Accounting
You wish to buy 1,000 shares of a stock that is currently selling for $25/share. your broker offers you 50% margin on all transactions, with a maintenance margin of 35%. the interest charged on loans is 8% per year
A) at what price point will a margin call be triggered?
B) Two months later, the stock pays a dividend of 75 cents a share, and the stock is trading at 21.90. calculate your ROI at this point?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
