Kale Corporation stock is selling for $15 a share. You would like to purchase as many shares of this stock as you can. Your margin account currently hasavailable cash of $9,000 and the initial margin requirement is 75%. What is the maximum number of shares you can buy?Multiple Choice500 shares700 shares750 shares800 shares

A margin account refers to an account used for purchasing securities where the investor has to pay…

Answered: Kale Corporation stock is selling for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. You decided to buy 100 shares of ABM Corp. Currently, it is trading at $43 per share. You think you can get a better price and place a limit order to buy shares at $42 per share. During the next month, the stock drops to $40 and then recovers to $44. What is your profit? 2. You decided to buy 400 shares of ABM Corp. that is trading at $37 per share. You want to get a better price and place a limit order to buy shares at $35 per share. During the next month, the stock drops to $36 and then recovers to $38. What is your profit?
2. You purchase 600 shares of Jenkins Corporation at $30 per share using an initial margin of 70%. The stock is now selling for $41 per share and you want to use the excess equity in your account to pyramid. You want to purchase 400 shares of Watson Corporation at $122 per share. If the minimum initial margin is 60%, what is the minimum amount of equity that you will have to put up in this transaction?
You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one: $12,000 $14,400 $14,800 $15,600 $12,800 Give typing answer with explanation and conclusion
please show formula
An investor has exchange-traded put options to sell 100 shares for $20. There is a $1 cash dividend declared. Which of the following is the position of the investor after the cash dividend? Put options to sell 100 shares for $21.00 Put options to sell 100 shares for $20.00 Put options to sell 105 shares for $19.00 Put options to sell 105 shares for $19.05
You buy 300 shares of Suncor Energy for $25 per share and deposit initial margin of 50%. The next day, Suncor Energy 's price drops to $20 per share. What is your actual margin the next day? Multiple Choice 25% 40% 50% 62.5% 60%
Answer the following problems with a complete solution. a. Find the 5% commission on the total sales of P20,000.00 b. You bought 20 shares at P750.00 per share. The broker charged her a P150.00 commission. Find the cost of the stock.c. You own 105 shares, par value P200.00. If the corporation declares an 8% dividend, what is the total dividend that should get? d. You bought ten P750.00 bonds at 315 plus a 6% brokerage fee. Find the investment.
You own 100 shares of stock that are earning $2 per share per year. According to market analysts, the stock is expected to continue to earn $2 long into the future. Using the annuity rule, and assuming an interest rate of 6.5 percent, it follows that the present value of these 100 shares is: Multiple Choice O O O O $30.77. $307.79. $3,076.92. $30,076.92.
Apisco Tiger Inc. stock is currently selling for $72.00 a share. The stock has a dividend yield of 3.50 percent. How much dividend income will you receive per year if you purchase 500 shares of this stock? Group of answer choices $1,450 $1,170 $921 $1,260 $850
Please answer is 24840, only post if your answer comes this with explanation and concept. Thabks!
You have a margin account and deposit Rs.90,000. Assuming the prevailing marginrequirement is 20%, commissions are ignored and D.G.K Cement stock is selling atRs.55 per share while Askari Cement stock is selling at Rs. 85 per share. You invest 40%of your investment in D.G.K cement while remaining is deposited in Askari cement.a. How many shares of each stock can you purchase using the maximum allowablemargin if you invest in both?b. What is your total and percentage profit (loss) if:1. the price of D.G.K Cement Rises to Rs.65 per share while Askari Cement stockrises to Rs. 97 per share?2. the price of D.G.K Cement reduces to Rs.42 per share while Askari Cementstock reduces to Rs. 76 per share?c. If you invest all money in D.G.K cement ONLY and the maintenance margin is 25%,to what price can D.G.K Cement stock fall before you will receive a margin call?d. If you invest all money in Askari cement ONLY and the maintenance margin is 25%,to what price can Askari cement stock fall before you…
You own 350 shares of Maslyn Tours stock that sells for $52.48 per share. If the stock has a dividend yield of 2.4 percent, how much do you expect to receive next year in dividend income from this investment? Multiple Choice $468.38 $489.81 $429.35 $455.53 $440.83

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