Kim opens a brokerage account and purchases 500 shares of Batliboy at OMR50 per share. She borrows OMR5,000 from her broker to help pay for the purchase. The interest rate on the loan is 7% What is the margin in Kim's account when she first purchases the stock If the share price falls to OMR40 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call? What is the rate of return on her investment? (The first question been solved, I need answer for second and third questions)
Kim opens a brokerage account and purchases 500 shares of Batliboy at OMR50 per share. She borrows OMR5,000 from her broker to help pay for the purchase. The interest rate on the loan is 7% What is the margin in Kim's account when she first purchases the stock If the share price falls to OMR40 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call? What is the rate of return on her investment? (The first question been solved, I need answer for second and third questions)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Kim opens a brokerage account and purchases 500 shares of Batliboy at OMR50 per share. She borrows OMR5,000 from her broker to help pay for the purchase. The interest rate on the loan is 7%
- What is the margin in Kim's account when she first purchases the stock
- If the share price falls to OMR40 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call?
- What is the rate of
return on her investment ?
(The first question been solved, I need answer for second and third questions)
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