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please show the steps how you get the answer..im trying to learn step by step Thank you H UI PIONIL wel weers! 15. De Trader
please show the steps how you get the answer..im trying to learn step by step
H UI PIONIL wel weers! 15. 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%. (LO 3-4) a. What is the margin in De's account when she first purchases the stock? b. If the share price falls to $30 per share by the end of the year, what is the remain- ing margin in her account? If the maintenance margin requirement is 30%. will she receive a margin call? c. What is the rate of return on her investment? 16. Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous question. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share. (LO 3-4) a. What is the remaining margin in the account? b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? c. What is the rate of return on the investment? 1 1 fun chare of teck The last trade in the stock Thank you
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