Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 02, 2024

Assume an investor buys 100 shares of stock at $35 per share, putting up a 75% margin. a. What is the debit balance of this

Assume an investor buys 100 shares of stock at $35 per share, putting up a 75% margin.

a. What is the debit balance of this transaction?

b. How much equity funds must the investor provide to make this margin transaction?

c. If the stock rises to $55 per share, what is the investor's new marginal position?

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

Ultimate Manual For Newbie Property Investors

Authors: Kimberly K. Benson

1st Edition

979-8866108688

More Books

Students also viewed these Finance questions

Question

★★★★★

For Deines Company, variable costs are 70% of sales, and fixed costs are $210,000. Management's net income goal is $60,000. Compute the required sales needed to achieve management's target net income...

Answered: 1 week ago

Question

★★★★★

The mean radius of the Earth is 6.37 x 106 m, and that of the Moon is 1.74 x 108 cm. From these data calculate (a) The ratio of the Earths surface area to that of the Moon and (b) The ratio of the...

Answered: 1 week ago

Question

★★★★★

=+1. Explain whether each of the following events represents (i) a shift ofthe supply curve or (ii) a movement along the supply curve. a. More homeowners put their houses up for sale during a real...

Answered: 1 week ago

Question

★★★★★

Per GASB standards if a government gives a cash advance to a grantee and the grantee has not yet satised all eligibility requirements, the government would offset its credit to cash with a debit to...

Answered: 1 week ago

Question

★★★★★

Assume an investor buys 100 shares of stock at $35 per share, putting up a 75% margin. a. What is the debit balance of this transaction? b. How much equity funds must the investor provide to make...

Answered: 1 week ago

Question

★★★★★

Skinny Foods, Inc. is a meal delivery service that delivers a months worth of low- fat, low-calorie meals to your door to aid you in your weight loss efforts. Customers can cancel their subscriptions...

Answered: 1 week ago

Question

★★★★★

Justin is a 13-year-old boy diagnosed with autism. He has an effective, but below average, use of spoken language but is able to communicate his emotions using picture cards that have a sad face, a...

Answered: 1 week ago

Question

★★★★★

Helen Martin Company issued $564,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Helen Martin Company uses the effective interest...

Answered: 1 week ago

Question

★★★★★

Southern Rail has just declared a dividend of $1. The average investor in Southern Rail faces an ordinary tax rate of 50%. Although the capital gains rate is also 50%, it is believed that the...

Answered: 1 week ago

Question

★★★★★

On March 20, Swifty's petty cash fund of $115 is replenished when the fund contains $15 in cash and receipts for postage $49, freight- out $11, and travel expense $35. Prepare the journal entry to...

Answered: 1 week ago

Question

★★★★★

Create DPIs master budget for the coming year using the information provided in the data input page of the file provided by your instructor. Your budget should be broken down so that the different...

Answered: 1 week ago

Previous Question Next Question