Question

Bill Campbell invested $4,000 and borrowed $4,000 to purchase shares in Walmart. At the time of investment, Walmart stock was selling for $62 a share.

**(a)** If Bill paid a $30 commission, how many
shares could he buy if he used *only* his own money and did
not use margin? **(Round your answer to 2 decimal
places.)**

Number of Shares: 64.51 Answer

**(b)** If Bill paid a $50 commission, how many
shares could he buy if he used his $4,000 and borrowed $4,000 on
margin to buy Walmart stock? **(Round your answer to 2
decimal places.)**

Number of Shares: 129.03 Answer

**(c)** Assuming Bill did use margin, paid a $90
total commission to sell his Walmart stock, and sold his stock for
$75 a share, how much profit did he make on his Walmart investment?
**(Use the number of shares computed in part (b) rounded to 2
decimal places. Round your final answer to 2 decimal
places.)**

**Total Profit after commission:**

**Please help me solve the last part of this
problem!**

Answer #1

Last year, Bill paid $4,000 in investment interest on
funds borrowed to purchase tax-free municipal bonds. If he had
$6,000 of tax-exempt interest last year, how much of his investment
interest may he deduct on his federal income tax
return

You’ve borrowed $15,000 on margin to buy shares in Ixnay, which
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a. Will you receive a margin call?
Yes
No
b. How low can the price of Ixnay shares fall
before you receive a margin call? (Round your
answer to 2 decimal
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Margin
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You decide to sell short 100 shares of Charlotte Horse Farms
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You decide to sell short 300 shares of Charlotte Horse Farms
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You decide to sell short 100 shares of Charlotte Horse Farms
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Mr. Salman wants to buy maximum number of odd lot shares of Atif
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You borrowed $10,000 on margin to buy shares in Pai Corp, which
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A. What is the initial value of stock? (Hint: use initial
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B. What is your margin at $15 (round to nearest percent:
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C. Will you receive a margin call (Yes/No)? ...

Todd Winningham IV has $5,400 to invest. He has been looking at
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Barbara buys 50 shares of DEM at $31.00 a share and 230 shares
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