You are a risk taker and love tech stocks. You recently bought Nviata (which as we know has increased in value significantly over the last year). You purchase 10 stocks of Nvidia $460 per share on June 26, 2023 with an initial margin of 50% and a 30% maintenance margin. At what price will you receive a margin call? O $3285.71 ○ $644 O $230.00 O $328.57

You are a risk taker and love tech stocks. You recently bought Nviata (which as we know has increased in value significantly over the last year). You purchase 10 stocks of Nvidia $460 per share on June 26, 2023 with an initial margin of 50% and a 30% maintenance margin. At what price will you receive a margin call? O $3285.71 ○ $644 O $230.00 O $328.57

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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Suppose you purchased a stock a year ago. Today, you receive a dividend of $18 and you sell the stock for $120 if your return was 10%, at what price did you buy the stock? 1272727 Moving to another question will save this response. Question 16 of 40
You bot $1000 stocks on margin using $700 of your own cash and $300 borrowed from your broker. The maintenance margin requirement of 30%. What's the market value of your stocks just before triggering a margin call? 418.57 428.57 500 408.57 468.57 448.57 438.57 458.57
Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $70, and ZZZ-Best consistently pays an annual dividend of $8. Based on your analysis, you estimate that the stock has a required rate of 18%. What is the intrinsic value of this stock? O $64.43 O $68.73 O $67.35 O $61.86 O $66.10
K Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $46.30 per share. She expects the price of the stock to rise to $47.65 over the next 3 years. During that time she also expects to receive annual dividends of $6.79 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 12%? b. What is its expected return? BCCCID a. The intrinsic worth of this stock is $ 50.22. (Round to the nearest cent.) b. The expected return is %. (Round to one decimal place.)
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You are considering buying a stock that will pay a dividend of $2.3 next year. The dividend is expected to grow at 5.6% per vear forever. The interest rate is 10.6%. What is the price of this stock today (in $ dollars)? $ A Moving to another question will save this response. « » Esc DII F5 F1 F2 F3 F4 F6 1 2 3 4 5 %23
You 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)?
One year ago you bought the common stock of Mizuho at ¥1050 in Tokyo Stock Exchange. The price is ¥1000 today. You received a dividend of ¥120 per share during the period. The exchange rate was ¥100 = $1 when you bought the stock and it is ¥80 = $1 today. Calculate the realized dollar rate of return on the stock if you sell the stock today. Select one: -6.89% O b. 28.11% O C. 33.33% O d. 23.13% a.
You are evaluating a company's stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 percent for a long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value? Multiple Choice O O E $26.25 $22.50 $35.26 $50.25 Q Search $ 4 R is do F % 5 164- T 8 N 10 DII K M O O ENG D
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
Suppose you short sell 100 shares of Twitter priced at $50 a share. The initial margin is 50% and the maintenance margin is 30%. a. Show the initial balance sheet view of your position, including assets, liabilities, & owners’ equity. b. At what price of the stock will your return be 45%?
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