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YOU NEED THE FOLLOWING INFORMATION TO ANSWER THE FOLLOWING 4 QUESTIONS Assume that you will buy stock on margin (i.. stock margin trading). Assume that

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YOU NEED THE FOLLOWING INFORMATION TO ANSWER THE FOLLOWING 4 QUESTIONS Assume that you will buy stock on margin (i.. stock margin trading). Assume that Texas Instruments Corp stock is currently selling for $50 per share. Assume that you will purchase 500 shares on July 29, 2002 at 11:00 AM. You have $15,000 of your own to invest and you will borrow an additional $10,000 from your broker at an interest rate of 10% per year. Assume that the Maintenance Margin is 40% 15) What is the Percentage Margin? 16) What is the initial position (on July 29, 2002 at 11:00 AM.) using the balance sheet equation. In other words, which of the following presents the balance sheet using this information. ASSETS LIAB & OWN EQUITY Stock $25,000 Liah $15,000 Equity $10,000 a b. ASSETS Stock $25.000 LIAB & OWN EQUITY Linh $10,000 Equity $15,000 ASSETS Stock $15.000 LIAB & OWN EQUITY Liab $0 Equity S15,000 d. ASSETS Stock $25.000 LIAB & OWN EQUITY Liab $11,000 Equity S 14,000 e none of the above 17) Which of the following presents the balance sheet if the stock price increases to $100 per share July 29, 2002 at 11:01 AM. In other words, which of the following presents the balance sheet using this information. ASSETS LIAB & OWN EQUITY Stock $50,000 Liab $10,000 Equity $40,000 a. b. . ASSETS Stock $25,000 LIAB & OWN EQUITY Liab $10,000 Equity $15,000 C. ASSETS Stock $50.000 LIAB & OWN EQUITY Liak $11,000 Equity $39,000 d. ASSETS Stock $50,000 LIAB & OWN EQUITY Liab $20,000 Equity $ 30,000 e. none of the above a. 18) Which of the following presents the balance sheet if the stock price increases to $100 per share July 29, 2003 AT 11:00 AM.. In other words, which of the following presents the balance sheet using this new information. ASSETS LIAB & OWN EQUITY Stock $50,000 Liab $10,000 Equity $40,000 b. ASSETS Stock $25.000 LIAB & OWN EQUITY Liab $10,000 Equity $15,000 LIAB & OWN EQUITY Liab $11,000 Equity $39,000 ASSETS Stock $50.000 I . ASSETS Stock $50,000 LIAB & OWN EQUITY Liab $21,000 Equity S 29,000 e. ASSETS Stock $50.000 LIAB & OWN EQUITY Liab S22,000 Equity $ 28,000

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