Question
You want to buy 5000 stock in APPLE at a price of 139 dollar , you do not have the whole amount so you decided
You want to buy 5000 stock in APPLE at a price of 139 dollar , you do not have the whole amount so you decided to buy it on margin , the broker gave you a leverage ratio of 1.8181
If the stock went up to 150 dollar or went down to 135 dollar what is your actual margin , equity, margin call price if maintenance margin is 35%.
What is your return in both cases if the broker takes 7% interest and the company pays 2 dollars dividend.
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Initial Margin 118181 55 Maintainance Margin 35 Margin Required to depos...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
