Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dese Trader opens a brokerage account and purchases 300 shares of Internet Breams at $34 per share, She borrows $4,400 from her broker to help

image text in transcribed

Dese Trader opens a brokerage account and purchases 300 shares of Internet Breams at $34 per share, She borrows $4,400 from her broker to help pay for the purchase. The interest rate on the loan 197%. Required: a. What is the margin in De's account when she first purchases the stock? b. If the share price falls to $24 per share by the end or the year, what is the remaining margin in her account? c. If the maimtenance margin requirement is 30%, will she recelve a margin call? Vs No d. What is the rate of return on her investment? (Negotive value ehould be Indicated by a minus sign. Round your ancwer to 2 decimal plocec:)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

The Doctrine Of Equivalents Or An Explanation Of The Nature Value And Power Of Money

Authors: George Craufurd

1st Edition

054833952X, 9780548339527

More Books

Students also viewed these Finance questions

Question

What is the cause of an unfavorable volume variance?

Answered: 1 week ago

Question

What is cost plus pricing ?

Answered: 1 week ago

Question

1. What are the types of wastes that reach water bodies ?

Answered: 1 week ago

Question

Which type of soil has more ability to absorb water?

Answered: 1 week ago