2) You have purchased 600 shares of Miller Moore Company for $50 per

share. Six months later, the company stock is selling for $63 per share. A

dividend of $.80 is paid during the six-month period.

A) Whats your total return during the six months?

B) Whats your annualized return for the investment?

3) You decide to buy 1,000 shares of ABC Company at $50 per share with an

initial margin of 50%, the call money rate is 6%. The stock has no dividend,

and one year later ABC stock is at $57 per share.

A) Whats the margin level one year later?

B) What is your % return on your investment one year later?

4) You buy 400 shares of stock at a price of $75 and initial margin of 45%. If

maintenance margin is 30%, at what price you will receive a margin call?