Answered step by step
Verified Expert Solution
Question
1 Approved Answer
IMR 0 . 5 0 MMR 0 . 3 0 Call rate 0 . 0 7 2 5 Shares 1 , 0 0 0 Aramark
IMR MMR Call rate Shares
Aramark
Purchase price, $
Sales price, $
Assume you bought the stock on
How much did you have to have in your account before you purchased the stock?
Assume you sold the stock on
How much did you pay in interest?
What was your total loan repayment?
What was your net cash inflow?
What was your return?
Assume you didnt sell the stock on
How low could the stock go before you got a margin call?
Suppose the price drops to $ a share. Would you get a margin call, and if so
what would be the amount?
Suppose the price drops from the lowest price without a margin call. What
is your actual margin?
What is your margin call amount?
Assume you meet the margin call.
What will your equity be after you meet the call?
Assume you cant meet the margin call.
What is the maximum market value you can have?
What is the reduction needed?
How many shares will your broker sell?
What is the actual reduction?
What is the value of your stock after your broker has sold the stock?
What is the value of your loan after your broker has sold the stock?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started