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De Trader opens a brokerage account, and purchases 370 shares of Internet Dreams at $76 per share. She borrows $5,070 from her broker to help
De Trader opens a brokerage account, and purchases 370 shares of Internet Dreams at $76 per share. She borrows $5,070 from her broker to help pay for the purchase (Ignore transaction costs). The interest rate on the loan is 15%. Requirement 1: What is the margin (aka, $ of equity) in De's account when she first purchases the stock? (Omit the "$" sign in your response.) Margin Requirement 2: (a)lf the share price falls to $66 per share by the end of the year, what is the remaining margin (aka, $ of equity) in her account? (Round your answer to the nearest dollar amount.Omit the "$" sign in your response. Also, remember to include interest on the margin loan for one period for this question) Remaining $ margin (b)lf the maintenance margin requirement is 31%, will she receive a margin call? No Requirement 3: What is the rate of return on her investment? (Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. Omit the "%" sign in your response. Also, remember to include interest on the margin loan for one period for this question) Rate of return %
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