Question
Assume you purchased 350 Shares of Noodle Inc. Company Stock in a margin account at $103 per share form your broker. Inital margin is 65%.
Assume you purchased 350 Shares of Noodle Inc. Company Stock in a margin account at $103 per share form your broker. Inital margin is 65%.
A) What share price would produce a margin call if maintenance margin is 25%?
B) What would your rate of return be if you sell the stock at $117 per share after 1 year? Interest on loan is 7% annually?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
