Question
You sell short 200 shares of Doggie Treats Inc. which are currently selling at $52 per share. You post the 50% margin required on the
You sell short 200 shares of Doggie Treats Inc. which are currently selling at $52 per share. You post the 50% margin required on the short sale. If your broker requires a 28% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account and the firm does not pay any dividends)
You short-sell 217 shares of Alibaba, at $108 per share. If you wish to limit your maximum loss to $5,000, you should place a stop-buy order at ____. Ignore any dividends, trading costs, and margin interest.
VLC Inc. sold 200,000 shares in an initial public offering. The underwriter's explicit fees were $57 thousand. The offering price for the shares was $39, but immediately upon issue, the share price jumped to $55. What is the best estimate of the total cost to the firm of the equity issue?
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