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Please help correct questions that are marked wrong. De Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share.
Please help correct questions that are marked wrong.
De Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. a. What is the margin in De's account when she first purchases the stock? (Omit the "S" sign in your response.) Margin $8,000 b-1. If the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? (Omit the "$" sign in your response.) Ragin $ 9,000 b2. If the maintenance margin requirement is 30%, will she receive a margin call? No c. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 1 decimal place. Omit the "%" sign in your response.) Rate of return 41.563 %Step by Step Solution
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