Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 08, 2024

An investor acquires 130 shares of IBM at a price of $50 per share using 55 percent margin. If the price of the shares falls

An investor acquires 130 shares of IBM at a price of $50 per share using 55 percent margin. If the price of the shares falls to $40, what is the new equity value of the position?

A. $2,625 B. $3,000 C. $1,625 D.2275

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A First Course in Quantitative Finance

Authors: Thomas Mazzoni

1st edition

9781108411431, 978-1108419574

More Books

Students also viewed these Finance questions

Question

★★★★★

The company purchased a piece of equipment. Terms of the purchase were as follows: $10,000 in cash immediately, followed by note payments of $20,000 at the end of each year for the next eight years....

Answered: 1 week ago

Question

★★★★★

A manufacturer of microcomputers produces three different models. The following table summarizes wholesale prices, material cost per unit, and labor cost per unit. Annual fixed costs are $30 million....

Answered: 1 week ago

Question

★★★★★

2. Use centering practices such as self-talk, deep breathing, or mindful movement to diffuse or prevent emotional outbursts.

Answered: 1 week ago

Question

★★★★★

Get It Right, CPAs, has been retained to review its client's corporate formation calculations for 20XX. Maria, Roger, and Novak created Grassroots Tennis, Inc. (GTI), which began operations on March...

Answered: 1 week ago

Question

★★★★★

Given the following data for XYZ company for the year end 12-31-20x1 Current assets $20,000 Long term assets $150,000 Current liabilities $50,000 Long term liabilities $70,000 Find total equity...

Answered: 1 week ago

Question

★★★★★

Analyze the role of allegory in conveying socio-political commentary in George Orwell's "Animal Farm" and its relevance in understanding historical contexts .

Answered: 1 week ago

Question

★★★★★

In the figure below, a stainless steel wire is supporting a weight, W. The Yield Strength and Young's Modulus for stainless steel (Grade 304) is 205 MPa and 190 GPa, respectively. What is the maximum...

Answered: 1 week ago

Question

★★★★★

Keelan visited a local accounting office and gave a demonstration to the accountants of a software product he was selling that streamlined the tax filing process. The accountants were excited at the...

Answered: 1 week ago

Question

★★★★★

P15-6- EOQ, reorder point, and safety stock Outdoor Living Manufacturers uses 1,000 units of a product per year. The fixed cost is $28 per order, while the carrying cost is $5 perunit per year. The...

Answered: 1 week ago

Question

★★★★★

In order to show more reported gains or less reported losses on the income statement, "gains trading" can be accomplished by selling securities classified as ____ with gains or by transferring...

Answered: 1 week ago

Question

★★★★★

A worker in charge of assembling a bicycle finds a faster way to mount the pedals. He turns to his supervisor. The supervisor explains that the process had been optimized by the engineering...

Answered: 1 week ago

Question

★★★★★

Hypothesis test has been widely used in health care , pharmacy , lab experiments , finance , manufacturing service and others . Please make a choice from one of the following two options : Option |:...

Answered: 1 week ago

Question

★★★★★

At December 31, 2006, Yserbius Corporation had a deferred tax liability of $25,000. At Decem- ber 31, 2007, the deferred tax liability is $42,000. The corporation's 2007 current tax expense is...

Answered: 1 week ago

Question

★★★★★

Murphy Corporation began operations in 2007 and reported pretax financial income of $225,000 for the year. Murphy's tax depreciation exceeded its book depreciation by $30,000. Murphy's tax rate for...

Answered: 1 week ago

Question

★★★★★

At December 31, 2006, Next Generation Inc. had a deferred tax asset of $35,000. At December 31, 2007, the deferred tax asset is $59,000. The corporation's 2007 current tax expense is $61,000. What...

Answered: 1 week ago

Previous Question Next Question