Find the share price

Assignment Help Corporate Finance
Reference no: EM1345935

A trader buys 200 shares of a stock on margin. The price of the stock is $20. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially? What share price is there a margin call?

Reference no: EM1345935

Questions Cloud

Definition and implication of portfolio theory : Give a brief explanation and implication of portfolio theory, and then argue both sides of portfolio theory, both limits and benefits.
Explain how do you suppose the tickets were rationed : Explain how do you suppose the tickets were rationed. Sketch supply and demand curves for the tickets to each of the two games.
Explaining bus collision avoidance protocol : Some network designers used alternative bus collision avoidance protocol known as the token bus protocol.
Explain why a relatively high value for the former : HPM 522, 1. Consider variables: Pr_Prob and Pr SIDE.   Explain why a relatively high value for the former and a relatively low value for the latter are the input values for the BEST case.
Find the share price : A trader purchase 200 shares of a stock on margin. The price of the stock is 20 dollar. The initial margin is 60 percent and the maintenance margin is 30%.
Define why covalent bonds are formed : A hydraulic lift consists of two pistons that connect to each other by an incompressible fluid. If one piston has an area of 0.49 m^2 and the other an area of 6.2m^2, how big a mass can be raised by a force of 220N exerted on the smaller piston.
Writing code in client program to enter score : Write down code in a client program to perform the following: prompt user to enter score and set score data member for player1.
Elucidate what happens to real gdp when it is initially : Elucidate what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies which would be appropriate for addressing this situation.
Explain what is the organization : Organizations and communication - need help with final communication research project.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Find the stock price according to mm proposition1

Consider two company, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm with one million shares outstanding that trade for a price of dollar 24 per share.

  Show what are the different categories of hedge funds

How does the risk of short-term funds differ from the risk of long-term funds and What are the different categories of hedge funds?

  Country risk assessment

You are employed at McDonalds Company. You want to do a Country Risk Assessment for Iran for the current year to decide whether you should operate a Franchise there.

  Pickins mining

Calculate the payback period, profitability index, net present value, and internal rate of return for the new strip mine.

  Find the ebit-eps indifference point

Find the EBIT-EPS Indifference point - What happens to the indifference point if the interest rate on debt increases and the common stock sales price remains constant

  Find the expected return on siebling''s common stock

Select the best option of Investment among various interest compounding and find the expected return on Siebling's common stock?

  Computing the monthly interest rate

You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments

  What is the future value of these cash flows

If the company uses an 8 percent discount rate and what is the future value of these cash flows at the end of year 4?

  Find the conversion price of stock

The tsetsekos Corporation was considering to finance an expansion. The principal executives of the c orporation  all agreed that an industrial company such as theirs should finance growth by means of common stock rather than by debt.

  Determine forms of market efficiency

Do empirical studies support or reject notion that corporate insiders earn abnormal benefits on their trades? What about outside investors who mimic their trades?

  Questions based on time value of money

Multiple choice questions based on time value of money - What is the net change in working capital from 2002 to 2003

  Explain how does the price of these bonds

Explain how does the price of these bonds today compare to the issue price - market rate of interest on these bonds

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd