What is the equity in the investors account, Corporate Finance

+44 141 628 6080
[email protected]

What is the equity in the investors account

Problem

An investor buys $48,000 worth of a stock priced at $60 per share using 60% initial margin. The broker charges 3% on the margin loan and requires a 35% maintenance margin. The stock pays a $.30 per share dividend in 1 year, and then the stock is sold at $63 per share. What is the equity in the investor's account when they get a margin call?

Request for Solution File

Ask an Expert for Answer!!

Corporate Finance: What is the equity in the investors account

Reference No:- TGS03224229

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Corporate Finance

Q : Discuss what could you do to limit the duration risk

Discuss what could you do to limit the duration risk in the portfolio. What type of securities could you allocate into the portfolio? Explain in detail.

Q : What would you say about importance of closing phase

What are some techniques Charlie could use to make sure no new issues are raised in the last five minutes of a session?

Q : What is the terminal cash flow in year ten

What is the terminal cash flow in year 10 (i.e. what annual after-tax cash flow in year 10 plus any additional cash flow associated with termination of project)

Q : Alleviating issues within the group setting

What are some boundaries that you may set as the group facilitator to alleviate issues within the group setting with parents and their child(ren)?

Q : What is the equity in the investors account

The stock pays a $.30 per share dividend in 1 year and then stock is sold at $63 per share. What is the equity in investor's account when they get margin call?

Q : What barriers could prevent development of rapport

Explain how you would go about developing rapport in the first session. What barriers could prevent the development of rapport and explain.

Q : How much does the investor have to deposit

An investor buys $56000 worth of stock priced at $70 per share using 60% initial margin. How much does the investor have to deposit when they get a margin call?

Q : Should wright continue operating the russian subsidiary

Wright Inc. established a subsidiary in Russia two years ago. Should Wright continue operating the Russian subsidiary? Why?

Q : Discuss the importance of self-care

Discuss how stress can impact parenting and why it's important to manage stress? Explore how stress can impact both the body and mind.

1948255

Questions
Asked

3,689

Active Tutors

1444410

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss patient with athsma about use of bronchodilators

You're instructing a patient with athsma about the use of bronchodilators. You should teach the patient which one?

Discuss new forms of advertising changing opdps work

How have social media and other new forms of advertising changing OPDP's work?

Observing and reporting a correctional clients behavior

Observing and reporting a correctional client's behavior is extremely important, to ensure they receive the right mental health care.

Discussion about improve patient satisfaction scores

You are trying to improve patient satisfaction scores in your hospital's emergency department. You decide to poll 40 patients a day for three weeks.

Problem concerning about the risk for stroke

Sam is concerned about his risk for his stroke since his dad died of stroke at age 57 based on the following information why would you recommend

Patient presented with acute-onset abdominal pain

You are on your 5th straight duty in the Urgent Care and you are seeing a 18 yo may who presented with acute-onset abdominal pain for 2 days.

Discuss - male with a history of moderate persistent asthma

A nurse is caring for an 8-year-old male with a history of moderate persistent asthma. He is accompanied by his mom and dad who reported