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PLEASE ANSWER ALL PARTS OF THE QUESTION Dee Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share. She
PLEASE ANSWER ALL PARTS OF THE QUESTION
Dee Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share. She borrows $5.000 from her broker to help pay for the purchase. The Interest rate on the loan is 5%. Required: a. What is the margin in Dee's account when she first purchases the stock? Margin b. If the share price falls to $19 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? Yes 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.) Rale of return Step by Step Solution
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