Question
1. Rebecca would like to purchase a stock on margin in her margin account. Currently, the stock she is considering is trading at $15 per
1. Rebecca would like to purchase a stock on margin in her margin account. Currently, the stock she is considering is trading at $15 per share and she would like to purchase 500 shares. What is her margin requirement if the margin rate is 25 percent and her brokerage firm is willing to lend her 75 percent of her purchase price?
2.
RBC has 121 million shares outstanding, with a current share price of $85.90 per share. If the firm's market-to-book ratio is 3.78, what is the firm's book value of equity?
3.
TTC has 36.35 million shares outstanding with a current share price of $38.50. The firm has a market-to-book ratio of 20 and a book debt-equity ratio of 3.18. If TTC currently has $24 million in cash, what is its enterprise value?
4.
Rebecca would like to purchase a stock on margin in her margin account. Currently, the stock she is considering is trading at $15 per share and she would like to purchase 500 shares. What is her margin requirement if the margin rate is 25 percent and her brokerage firm is willing to lend her 75 percent of her purchase price?
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