Suppose Poornima wants to purchase 300 shares of Hummingcast stock at $50 per share through Georgia Brokerage. The value of the shares is If Poornima does not have enough funding to purchase the shares herself, and Georgia Brokerage requires an initial margin of at least 60 percent, Poornima's initial equity investment would need to be at least in order for Georgia Brokerage to lend her the funds. If Poornima invests this amount, then Georgia Brokerage would cover the remaining If the price of Hummingcast's decreases to $40 per share, then the total value of Poornima's shares is now . As a result, Poornima still owes the brokerage firm , and as a result, her equity position is now , which represents of the market value of the stock. If Georgia Brokerage requires a maintenance margin of 40 percent, then Poornima receive a margin call from Georgia Brokerage. If Georgia Brokerage requires a 10 percent annual interest payment on the loaned funds, the shares paid out an annual divided of $4 per share, and Poornima sold the shares at the end of the year when the price dropped to $40 per share, then what would her return on stocks purchased on min be? 30.67percent26.67percent24.00percent21.34percent If Poornima was able to fund the entirety of the stock purchase herself and sold the shares at the end of the year when the price dropped to $40 per share, then what would her return on stocks purchased be? -14.64 percent -12.00 percent -11.40 percent -10.44 percent True or False: Based on your calculations, it can be concluded that purchasing stock on margin results in fewer losses if the stock price decreases. True False Suppose Poornima wants to purchase 300 shares of Hummingcast stock at $50 per share through Georgia Brokerage. The value of the shares is If Poornima does not have enough funding to purchase the shares herself, and Georgia Brokerage requires an initial margin of at least 60 percent, Poornima's initial equity investment would need to be at least in order for Georgia Brokerage to lend her the funds. If Poornima invests this amount, then Georgia Brokerage would cover the remaining If the price of Hummingcast's decreases to $40 per share, then the total value of Poornima's shares is now . As a result, Poornima still owes the brokerage firm , and as a result, her equity position is now , which represents of the market value of the stock. If Georgia Brokerage requires a maintenance margin of 40 percent, then Poornima receive a margin call from Georgia Brokerage. If Georgia Brokerage requires a 10 percent annual interest payment on the loaned funds, the shares paid out an annual divided of $4 per share, and Poornima sold the shares at the end of the year when the price dropped to $40 per share, then what would her return on stocks purchased on min be? 30.67percent26.67percent24.00percent21.34percent If Poornima was able to fund the entirety of the stock purchase herself and sold the shares at the end of the year when the price dropped to $40 per share, then what would her return on stocks purchased be? -14.64 percent -12.00 percent -11.40 percent -10.44 percent True or False: Based on your calculations, it can be concluded that purchasing stock on margin results in fewer losses if the stock price decreases. True False
