Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You MUST SHOW ALL work to get FULL credits For (Question 1) and (Question 2) Original Buying Price = $80 Current Price $100 Cash Dividend

image text in transcribed
image text in transcribed
You MUST SHOW ALL work to get FULL credits For (Question 1) and (Question 2) Original Buying Price = $80 Current Price $100 Cash Dividend ($10) $100 Stock Dividend (25%) $100 Stock Split (8 to 1) $100 Stock Repurchase (50%,$150) $100 1,000 1,000 1. Stock Price (Before) 2. Total # of stock (Before) 3. Total Assets (Before) 4. Stock Price (After) 5. Buying Base Price 1,000 $100,000 1,000 $100,000 $100,000 $100,000 (Question 1) (REQUIRED)SHOW calculations for Full Credits Fill in 4. Stock Price(After) row. (Question 2) (REQUIRED) SHOW calculations for Full Cred Fill in 5. Buying Base Price row. EIN209) (Question 3) (REQUIRED) You are a bond andere boste power town ew York City aders to a weer weer in die following bonds when counter on und mature stor before the end of years Bond Price 5100 100.00 Face Value A Coupon TX 95.00 3100 3100 11200 (Answers) Bond Cash Cash Price Today Buy (shares) (sh) Cash flow NOW Cash Prow Y2 Yout You A 100 00 95.00 2 112.00 4 Total (Question 4) (REQUIRED) You tell your broker to sell 1,000 shares @$100 (5100,000) and 50% margin requirement on short sales. You have $50,000 Tbils If maintenance margin on short sales - 30%. This means the equity in your accounts be at least 30% of the value of your short position at all times How far could the stock price RISE before the investor would get margin cak? 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Generational Wealth Personal Financial Handbook

Authors: Sherique Dill

1st Edition

1985161222, 978-1985161221

More Books

Students also viewed these Finance questions

Question

List behaviors to improve effective leadership in meetings

Answered: 1 week ago