You believe that Thorn Enterprises stock is going to fall, so you have decided to short sell
Question:
You believe that Thorn Enterprises stock is going to fall, so you have decided to short sell 1,000 shares at a price of $32. Assuming the initial margin requirement is 50 percent, construct the equity account balance sheet for this trade. If the maintenance margin is 30 percent, at what price would a margin call result?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
Assets Initial margin deposit Total Proceeds from sale 32000 16000 4...View the full answer
Answered By
Issa Shikuku
I have vast experience of four years in academic and content writing with quality understanding of APA, MLA, Harvard and Chicago formats. I am a dedicated tutor willing to hep prepare outlines, drafts or find sources in every way possible. I strive to make sure my clients follow assignment instructions and meet the rubric criteria by undertaking extensive research to develop perfect drafts and outlines. I do this by ensuring that i am always punctual and deliver quality work.
5.00+
6+ Reviews
13+ Question Solved
Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Question Posted:
Students also viewed these Business questions
-
A Case Study of Financial Reporting Issues Qing L. Burke Tim V. Eaton Miami University Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues ABSTRACT: In September 2014,...
-
Using Java: Write the code for a class Football with at least 3 class member variables (instance variables) that describe a ball that is used to play soccer (European or Latin American football game)...
-
Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
-
As manager of a local pizza parlor, you want to develop a balanced scorecard so you can more effectively monitor the restaurants performance. Required a. Propose at least two goals for each...
-
An alloy steel (4340) is to be used in an application requiring a minimum tensile strength of 1380MPa (200,000psi) and a minimum ductility of 43%RA. Oil quenching followed by tempering is to be used....
-
Determine whether f (0) exists? if x0 I sin 35. f(x) - if x= 0 sin if x+ 0 36. f(x) = if x = 0
-
Assume that you operate a country western dance club. Create a script for your servers to follow when they must tactfully refuse to serve alcohol to an intoxicated guest. Provide responses your...
-
Moranda and Sills, LLP, has served for over 10 years as the auditor of the financial statements of Highland Credit Union. The firm is conducting its audit planning for the current fiscal year and is...
-
When do we recognize these expenses, in July or August? 1 . During July, Sparkling Pools paid for $ 3 6 0 0 rent for three months: September, October, and November. 2 . During July, Sparkling Pools...
-
On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( EV of $1. PV of $1. EVA of $1. and PVA of $1) (Use the appropriate factor(s)...
-
Suppose again that a stock pays three annual dividends of $100 per year and the discount rate is k = 15 percent. In this case, what is the price of the stock today?
-
In Problem 14, suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2023. What is the new divisor for the index? Calculate the rate of return on the index for the...
-
Jack's Apps Company researches, develops, and sells traditional applications (i.e., apps) for middle-aged mobile phone device users. In an attempt to tap into the large young adult app market to...
-
firm c has net income of 45,360 , asset turnover of 1.4 and roi 12.6% calculate firms margin,sales and average total assets
-
A poll of 1065 Americans showed that 47.2% of the respondents prefer to watch the news rather than read or listen to it. Use those results with a 0.10 significance level to test the claim that fewer...
-
Garcia Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for the cost of one unit: Standard Quantity X Standard...
-
Express the confidence interval 0.255 0.046 in the form of p-E
-
5 28 its Jay Oullette, CEO of Bumper to Bumper Incorporated, anticipates that his company's year-end balance sheet will show current assets of $12,801 and current liabilities of $7,540. Oullette has...
-
a. Is a partnership liable for the promises that its partners make? b. In this case, five partners promised the associate that, as long as he committed no major blunders, he would make partner the...
-
Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.
-
Go to the library (or get on the Internet) and find (in some government publication or website) three marketing-oriented facts on international markets that you did not know existed or were...
-
Texmac, Inc., has an idea for a new type of weaving machine that could replace the machines now used by many textile manufacturers. Texmac has done a telephone survey to estimate how many of the...
-
Discuss several ways in which physical goods are different from pure services. Give an example of a good and then an example of a service that illustrates each of the differences.
-
Calculate the current ratio and the quick ratio for the following partial financial statement for Tootsie Roll Note: Round your answers to the nearest hundredth
-
Required information Skip to question [ The following information applies to the questions displayed below. ] Golden Corporation's current year income statement, comparative balance sheets, and...
-
Glencove Company makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September...
Study smarter with the SolutionInn App