Question

You have a $100,000 cash balance in a margin account, how much stock can you buy...

You have a $100,000 cash balance in a margin account, how much stock can you buy with that balance?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You have a margin account with an initial margin requirement of 60%. You buy 43 shares...
You have a margin account with an initial margin requirement of 60%. You buy 43 shares of KPG at $158.77 using your full margin. In your initial Balance Sheet, how much equity do you have?
you purchase $8000 worth of company X stock on margin (50% initial margin account). the stock...
you purchase $8000 worth of company X stock on margin (50% initial margin account). the stock was selling at $40 at the time. the maintenance margin is 30%. if the stock price falls to $25, how much is the margin call?
You have just borrowed $67,500 on margin to buy shares in ABC, which is currently quoting...
You have just borrowed $67,500 on margin to buy shares in ABC, which is currently quoting as the bid price of $29.99 bid and the ask price of $30.00 ask per share. The minimum margin is 35%, and your initial margin requirement is 55%. Assume that ABC will pay no dividends before you return the loan and that that you pay no interest on your loan. If you buy ABC in margin, what is the maximum number of shares you...
You currently have 10000 in a saving account that earn 6% per year. How much can...
You currently have 10000 in a saving account that earn 6% per year. How much can you withdraw at the end of each of the next three years from this account and have a zero balance after third withdraw?
If you put $100,000 in to a bank account earning 3% interest, how much will you...
If you put $100,000 in to a bank account earning 3% interest, how much will you have in 5 years if the 3% is an annually compounded APR? What if it is a semiannually compounded APR? What if it is a monthly compounded APR? What if it is a continuously compounded APR?
You have $100,000 to invest. You can invest in stock of ABC and earn 12% return....
You have $100,000 to invest. You can invest in stock of ABC and earn 12% return. You can also borrow at the risk-free rate of 6%. How can you invest (weight) so that you can make 15% return? Q- How much will you invest in ABC and how much you need to borrow? (in amounts). Q- Use the same information given in the last problem, how can you make 18% return?
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of...
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of 50%. You also buy 200 shares of stock ABC at $50 a share with an 60% margin. You are very sure that, in six month, the price of the first stock would be $15 because you got insider information, but you are not so sure about the price of the second stock. Suppose you want to achieve a 20% return from your portfolio, then...
. You deposit $120,000 cash in a brokerage account and buy stocks with the market value...
. You deposit $120,000 cash in a brokerage account and buy stocks with the market value $200,000 (without commission), the initial margin requirement is 50%. The maintenance margin is 30%. You paid 0.5% of transaction value commissions for each transaction. Suppose the stocks pay $5000 cash dividends and ignore the loan interest expenses. You do not trade stocks until you receive a margin call. What is the value of your stock holdings when you receive a margin call in three...
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of...
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of 50%. You also buy 200 shares of stock ABC at $50 a share with an 60% margin. You are very sure that, in six month, the price of the first stock would be $15 because you got insider information, but you are not so sure about the price of the second stock. Suppose you want to achieve a 20% return from your portfolio, then...
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of...
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of 50%. You also buy 200 shares of stock ABC at $50 a share with an 60% margin. You are very sure that, in six month, the price of the first stock would be $15 because you got insider information, but you are not so sure about the price of the second stock. Suppose you want to achieve a 20% return from your portfolio, then...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT