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Assume Dom purchases 1,000 shares of Apple at $460/share. The Margin Requirement on the account is 60%, and there is a 9% annual interest
Assume Dom purchases 1,000 shares of Apple at $460/share. The Margin Requirement on the account is 60%, and there is a 9% annual interest rate associated with borrowed funds. Commissions on all transactions in the account are equal to 1% Over the course of the year, Apple provides dividends equal to $10/share. 1. What is the amount of cash (round to nearest whole dollar) invested by Dom in this transaction 185840 2. What is the amount of interest (show two decimal places) that Dom would pay on the borrowed funds in this transaction 25088.4 3. Calculate the percentage (do not write % sign, but include - sign value is negative) earned/lost by Dom if he were to sell at $430/share 5 pt
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