Part 3 and Part 4

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The price of Walmart stock is currently $36.06 and you decide to buy 100 shares on margin. The inital margin is 60% and the broker's maintenance margin is 40%. The broker charges an effective annual interest rate of 5% on the margin loan. Attempt 1/3 for 10 pts. What is your effective annual return? Attempt 1/3 for 10 pts. What is the minimum value the stock price can take after 9 months before you are issued a margin call? 10, Initial margin = # of share x stock price x initial marg =10036.0660% =2163.6 stock Value: 10044.17=441 ) (new) 1442.4 Amonat bonowed: 1442.4 = # of share - price. (1-initial magin) =10036.0640%= Equity Value (new): 44171442.4=2974.6 % Margin (new): =TotalEquity=44172974.6=0.633 Effectile ansenl return =[1+ Loss on The price of Walmart stock is currently $36.06 and you decide to buy 100 shares on margin. The inital margin is 60% and the broker's maintenance margin is 40%. The broker charges an effective annual interest rate of 5% on the margin loan. Attempt 1/3 for 10 pts. How much money do you have to contribute to the account if you borrow as much as possible? Correct Attempt 1/3 for 10 pts. If the price rises to $44.17 after 9 months, what is the new percentage margin in the account? Correct 2 The price of Walmart stock is currently $36.06 and you decide to buy 100 shares on margin. The inital margin is 60% and the broker's maintenance margin is 40%. The broker charges an effective annual interest rate of 5% on the margin loan. Attempt 1/3 for 10 pts. What is your effective annual return? Attempt 1/3 for 10 pts. What is the minimum value the stock price can take after 9 months before you are issued a margin call? 10, Initial margin = # of share x stock price x initial marg =10036.0660% =2163.6 stock Value: 10044.17=441 ) (new) 1442.4 Amonat bonowed: 1442.4 = # of share - price. (1-initial magin) =10036.0640%= Equity Value (new): 44171442.4=2974.6 % Margin (new): =TotalEquity=44172974.6=0.633 Effectile ansenl return =[1+ Loss on The price of Walmart stock is currently $36.06 and you decide to buy 100 shares on margin. The inital margin is 60% and the broker's maintenance margin is 40%. The broker charges an effective annual interest rate of 5% on the margin loan. Attempt 1/3 for 10 pts. How much money do you have to contribute to the account if you borrow as much as possible? Correct Attempt 1/3 for 10 pts. If the price rises to $44.17 after 9 months, what is the new percentage margin in the account? Correct 2