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De Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $28 per share. She borrows $3,000 from her broker to help
De Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $28 per share. She borrows $3,000 from her broker to help pay for the purchase. The interest rate on the loan is 12%. Required: a. What is the margin in De's account when she first purchases the stock? Margin b. If the share price falls to $18 per share by the end of the year, what is the remaining margin in her account? Remaining margin c. If the maintenance margin requirement is 30%, will she receive a margin call? O Yes O No d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return %
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