The price of Walmart stock is currently $48.26 and you decide to buy 160 shares on margin. The inital margin is 60% and the broker's maintenance margin is 30%. The broker charges an monthly interest rate of 0.4% on the margin loan. Attempt 1/1 Part 1 After 8 months, the stock price has changed to $24.13. How much must you deposit to meet your margin call?
Q: e people shared the largest payout in lottery history of 1.5 billion dollars (500 million a piece).…
A: Present value is the equivalent of the future money to be received based on the time value of money…
Q: 14 BALANCE SHEET 15 ASSETS 16 Cash and marketable securities 17 Accounts receivable 18 Inventory 19…
A: Current ratio is a financial ratio that measures a company's ability to pay off its short-term…
Q: Expecting to retire in 20 years, you invest $5000 today in your retirement account which pays an…
A: Future value is an estimate of future cash flows that may be received at a future date, discounted…
Q: Uma plans on investing $215 monthly into a vehicle that will earn 9.75% for 12 years. At the end of…
A: Finacial planning is quite necessary for the objectives to be achieved in the future based on time…
Q: tarting in 5 years and 6 months you want to be able to withdraw $950 every three months for 3 years…
A: In compounding there is interest on interest due to which large amount of interest is accumulated…
Q: Ron Prentice bought goods from Shelly Katz. On Feb. 26, Shelly gave Ron a time e lay note. On May…
A: Notes are financial instruments in which interest is paid on maturity along with principal amount.
Q: 7. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds…
A: A treasury note is a kind of debt security issued by the government and private companies to the…
Q: nd the average daily balance for the credit card with the following ansactions. Assume one month…
A: The average balance, also known as the average daily balance, is a financial term that refers to the…
Q: Referring to the spreadsheet graphic provided below; the optimal formula is terms of flexibility to…
A: A growth rate is a measurement that, sometimes defined as a percentage, represents the rise or fall…
Q: with many TA's working from the same pool of candidates, communication within the team is key. How…
A: Avoiding the issue of multiple TAs contacting the same candidate for the same position is crucial to…
Q: Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The…
A: Net Present Value(NPV) refers to one of the concepts from the modern techniques of capital budgeting…
Q: Instead of investing the entire $1,078,000, Bogut invests $324,200 today and plans to make 9 equal…
A: Value of money increases over the time due to the interest and compounding of interest over the…
Q: A flexible policy would include ___(1)___ cash balances, and __(2) investments in inventory, while a…
A: Flexible Policy: A flexible policy involves low cash balances, small investments in inventory, and a…
Q: What is the stock’s beta?
A: First, we need to determine the required return using the dividend discount formula.
Q: A loan of £10,800 is to be repaid over a 11-year contract by three initial payments of £2,000,…
A: Loans refer to contracts between parties where money is forwarded by one to the other on the promise…
Q: t is the present value of $2,250 due in 10 years a
A: Present value is the equivalent value of future money today based on period and interest…
Q: You apply for a mortgage loan on a $350,000 condo using 85% loar lue. Going interest rates are…
A: Loans are paid by monthly payments that carry the payment for interest and payment for the principal…
Q: On June 30, 2024, Georgia-Atlantic, Incorporated, leased warehouse equipment from IC Leasing…
A: Lease is a agreement between lessor and lessee where lessor allows lessee to use asset in exchange…
Q: Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock…
A: The warrants are the options to purchase share at a specified exercise price. It can be issued along…
Q: We are looking at a European put option and a European call option written on the same under same…
A: Options gives the opportunity to buy and sell stocks on the expiration but there is no obligation to…
Q: An asset is projected to generate 15 annual cash flows of $32,000 starting 6 years from today. If…
A: Present Value:It represents the current worth of the future expected cash flows.It is computed by…
Q: Your stock portfolio earned 3%, -12%, and 3% for the last three years. What is your annualized…
A: The annualized return for the last three years on arithmetic average is
Q: Riyadh Ltd. generated total sales of $32,565,420 during fiscal 2021. Depreciation and amortization…
A: The net income after taxes is the efficiency of the company to generate the in-hand profit from the…
Q: The table below shows the time to maturity for 3 bonds, a 2-year, 3-year, and 5- year. Each annual…
A: The bond can be referred to as the instruments that are being traded in the financial market so that…
Q: You inherited $50,000 which you invested at 3.5%. You want to withdraw $9,000 at the end of each…
A: The concept of time value of money will be used and applied here. As per the concept of time value…
Q: A 10-year Circular File bond with face value of $1,000 pays interest once a year of $65 and sells…
A: Bond valuation:Bond valuation refers to the process of determining the fair value of a bond, which…
Q: Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales S 26,000 S $23,473 $20,640…
A: The accounts payable period is the number of days it takes for a company to pay its supplies. Here,…
Q: Required information [The following information applies to the questions displayed below.] A pension…
A: The Sharpe ratio calculates performance adjusted for risk by dividing the extra profit earned on a…
Q: You write a call option with a strike of $1.473/£ and a premium of $0.72. The current spot exchange…
A: - Strike Price (K): $1.473/£ - Premium Paid (C): $0.72 - Current Spot Exchange Rate (S):…
Q: Current assets Cash MOOSE TOURS, INC. 2008 Income Statement Sales Costs Other expenses Earnings…
A: EFN is the amount of external finance required that may be needed to maintain growth in sales and…
Q: If Elizabeth co. believes that an 0.7 percent default risk premium, an 0.2 percent liquidity…
A: A measure of the return an investor might anticipate from investing in commercial paper is the yield…
Q: Each of the three independent situations below describes a finance lease in which annual lease…
A: Lease payments:Lease payments refer to the regular monetary installments made by a lessee to a…
Q: Use the given stock table to find the closing price for ABC Technologies (ABC). 52-Week Div Yld Vol…
A: Stock Table:To get an insight into the performance of the particular stock, one should read the…
Q: Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year…
A: An annuity is a method of fulfilling a financial goal for a specified period of time at a defined…
Q: What will be his annual pension benefit if he was with Plastis Co.
A: An employer may offer pension benefits to provide its workers with financial security throughout…
Q: You are taking out a single-payment loan that uses the simple interest method to compute the finance…
A: Amount of Loan = $10,000Interest Rate (annual) = 6% = 0.06 (as a decimal)Term of Loan = 2 yearsThe…
Q: It will take n years, t months and u days to pay off a $1000 loan if $100 is paid a the end of every…
A: Loans are paid by equal periodic payments that carry the payment for interest and loan.
Q: question 2,3,4
A: To determine the volume traded we need to look at the sales in the given table. To determine the…
Q: Bank of America has a 5%, annual coupon bond that will mature in 19 years. The interest rate for…
A: Par value = $1,000Annual coupon rate = 5%Annual coupon amount = Par value *Annual coupon rate…
Q: Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager…
A: Variables in the question:Portfolio value = $20,500,000Portfolio beta = 1.25Future price =…
Q: What is the stock's expected return? Do not round intermediate calculations. Round your answer to…
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: A bond investor is analyzing the following annual coupon bonds: Issuing Company Johnson Incorporated…
A: Bond specifications sometimes include the terms for the borrower's variable or fixed interest…
Q: (Expected rate of return and risk) Syndex, Inc is considering an investment in one of two common…
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: 2022 Income Statement (in millions) Net sales Cost of goods sold Depreciation Earnings before…
A: The quick ratio, also known as the acid-test ratio, is a financial metric that measures a company's…
Q: 1. A municipal bond has a coupon rate of 5.83 percent and a YTM of 5.53 percent. If an investor has…
A: The yield at which a pretax bond is equal to a tax-free bond is equivalent to a pretax yield. This…
Q: JLB Corporation is attempting to determine whether to lease or purchase research equipment. The firm…
A: We have to use excel and its functions to compute the required answers. The cost of leasing and…
Q: our broker has developed a list of firms, their betas, and the return he expects the stock to yield…
A: Capital Asset Pricing Model (CAPM) is an alternative model to find out the cost of equity or the…
Q: ABC Inc. just paid a dividend of $10 on its stock. The growth rate in dividends is expected to be a…
A: Firstly, we will calculate the Present value of Dividends for the first 6 years at different…
Q: The expected pretax return on three stocks is divided between dividends and capital gains in the…
A:
Q: Robert spent $6,000 to install a new asphalt roof on his main home. The roof meets the applicable…
A: for qualified energy efficiency improvement = 10% of costtax credit for non business energy limit =…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 6 images
- You buy stock on margin in your brokerage account when it is trading at $42.76 per share. You have $4050 in equity (cash) in your account and buy 195 shares. Your broker makes a margin loan so you can pay the difference at an annual rate of 0.0825 One year later the stock price is 44.9 What is the margin percentage in the account one year after the trade is made? Group of answer choices 0.4933 0.4698 0.4247 0.4447 0.4014You opened a margin account with borrowing $50,000 from your broker a year ago. Your account started at the initial margin requirement of 50%. With the margin account you bought ABC stock at $50 per share. The maintenance margin is 35%. Today, the stock price falls to $45 per share. Assume interest rate is 10%. What is the margin (your equity) in your account when you first purchase the stock? Will you receive a margin call? (Please consider interest expenses and Show percentage margin after price falls) How low can the price of ABC shares fall before you receive a margin call? Please show both with and without interest expenses. What is your rate of return (Consider Interest Expenses)?You want to purchase Stock A currently trading at $50 per share. You have $10,000 of your own to invest. You borrow an additional $10,000 from your broker and invest $20,000 in the stock. How far does the price of Stock A have to fall for you to get a margin call if the maintenance margin is 35%? Round your answer to two decimal places and enter the number without the dollar sign
- You've borrowed $27,392 on margin to buy shares in bxnay, which is now selling at $42.8 per share. You invest 1280 shares. Your account starts at the initial margin requirement of 50% The maintenance margin is 35%. Two days later, the stock price changes to $49 per share. a. Will you receive a margin call? O Yes ONo b. At what price will you receive a margin cal? (Round your answer to 2 decimel pleces.)You’ve borrowed $22,000 on margin to buy shares in Ixnay, which is now selling at $32 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $22 per share. a. Will you receive a margin call? multiple choice No Yes b. How low can the price of Ixnay shares fall before you receive a margin call? (Round your answer to 2 decimal places.) Margin call will be made as price _______ or lower.Suppose that XTel currently is selling at $50 per share. You buy 800 shares using $30,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%. Required:a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (i) $56; (ii) $50; (ii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) b. If the maintenance margin is 25%, how low can XTel’s price fall before you get a margin call? (Round your answer to 2 decimal places.) c. How would your answer to requirement b would change if you had financed the initial purchase with only $20,000 of your own money? (Round your answer to 2 decimal places.) d. What is the rate of return on your margined position (assuming again that you invest $30,000 of your own money) if XTel is selling after one…
- You've borrowed $27,950 on margin to buy shares in Ixnay, which is now selling at $43.0 per share. You invest 1,300 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%, Two days later, the stock price changes to $50 per share. Required: a. Will you receive a margin call? O Yes O No b. At what price will you receive a margin call? (Round your answer to 2 decimal places.) Stock priceSuppose that XTel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. Required:a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (i) $44; (ii) $40; (iii) $36? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) b. If the maintenance margin is 25%, how low can XTel’s price fall before you get a margin call? (Round your answer to 2 decimal places.) c. How would your answer to requirement b change if you had financed the initial purchase with only $10,000 of your own money? (Round your answer to 2 decimal places.) d. What is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if XTel is selling after one year…Suppose that XTel currently is selling at $50 per share. You buy 800 shares using $30,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%. Required:a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (i) $56; (ii) $50; (ii) $44? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) b. If the maintenance margin is 25%, how low can XTel’s price fall before you get a margin call? (Round your answer to 2 decimal places.) c. How would your answer to requirement b would change if you had financed the initial purchase with only $20,000 of your own money? (Round your answer to 2 decimal places.)
- Suppose that Xtel currently is selling at $46 per share. You buy 250 shares using $8,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 6%. Required: a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to: (i) $48.76; (ii) $46; (iii) $43.24? What is the relationship between your percentage return and the percentage change in the price of Xtel? b. If the maintenance margin is 25%, how low can Xtel's price fall before you get a margin call? c. How would your answer to (b) change if you had financed the initial purchase with only $5,750 of your own money? d. What is the rate of return on your margined position (assuming again that you invest $8,000 of your own money) if Xtel is selling after 1 year at: (i) $48.76; (ii) $46; (iii) $43.24? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel…Suppose that Kaka Plc currently is selling at $50 per share. You buy 900 shares using $22,050 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%. Required If the maintenance margin is 20%, how low can Kaka Plc’s price fall before you get a margin call? (Round your answer to 2 decimal places.)You have opened an account with a local broker & you placed an order for 4,000.0 shares of KLM corp. @ $8.0 a share. The initial margin is 50.0%; the broker's rate is 6.0% and the maintenance margin is 30.0%. If you keep the stock for one year & the stock price goes up to $12.0 a share, you annual return would be:- Select one: O a. 78.0% O b. 100.0% O c. 85.0% O d. 94.0% E + 71 More