$40 per 1. Dee Trader opens a brokerage account, and purchase 300 shares of Internet Dreams at share. She borrowed $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. The maintenance margin requirement is 30% (18pts) a. What is the margin in Dee's account when she first purchased the stook? (3pts) b. If the share price rises to $43, what is the margin in Dee's account? Show Dee's balance sheet (5pts) c. If Dee sells the shares at $43, what is the rate of return will she obtain? (3pts) d. If the share price falls to $30, what is the remaining margin in her account? Will she receive a margin call? (4pts) e. How far can the stock price fall before a margin call? (3pts) 2. Multiple Choice (1pt each) ) Underwriting is one of the service,provided by A the SEC C. publicly traded companies FDIC B.) investment bankers The bulk of most initial public offerings (IPOs) of equity securities goes to A) institutional investors C the firm's current shareholders B. individual investors D. day traders 3)haal margin requirements on stocks are set by the Federal Deposit Insurance Corporation the Federal Reserve the New York Stock Exchange the Securities and Exchange Commission C D JAn order to buy or sell a security at the current price is a B market order - - A. limit order C. stop-loss order D. stop-buy order 5) lf an investor places a order, the stock will be sold if its price falls to the stipulated level. If an investor places aorder, the stock will be bought if its price rises above the stipulated level. A stop-buy, stop-loss Cstop-loss, stop-buy B. market, limit D. limit, market 6) The process of poling potential investors regarding their interest in D forthcoming initial public offering (IPO) is called