How low can the price of disney shares fall

Assignment Help Financial Management

Reference no: EM132048405

You've borrowed $18,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%.

The maintenance margin is 35%. Two days later, the stock price falls to $35 per share.

How low can the price of Disney shares fall before you receive a margin call?

Reference no: EM132048405

Questions Cloud

What is the value of a common stock : What is the value of a common stock if the firm's earnings and dividends are growing annually at 4 percent.

What volume will the gas occupy at a pressure : What volume will the gas occupy at a pressure of 0.15 atm please explain how you got the answer?

What value would you place on a share of van buren stock : Van Buren, Inc., currently pays $2.15 per share in dividends on its common stock. Dividends are expected to grow at 5.00% per year forever.

Potassium hydrogen phosphate : What volume of 0.08892M HNO3 is required to react completely with 0.2352 g of potassium hydrogen phosphate?

How low can the price of disney shares fall : You've borrowed $18,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%.

Calculate the unamortized bond discount at june : Scheich uses the effective-interest method of amortizing bond discount. At June 30, 2019 the unamortized bond discount should be

How many grams of protein are in the serving : aA serving of Chicken A La King has 235 kcal. If the serving has 11 g of carbohydrates and 12 g of fat, about how many grams of protein are in the serving

What is the heat of fusion of ethanol in calories per mole : What is the heat of fusion of ethanol in calories per mole? The heat of fusion for ethanol is 45.2 cal/g. The molar mass of ethanol is 46.0 g/mol.

Compute the number of equivalent units : Compute number of equivalent units with respect to both materials used and conversion used in the production department for April using weighted-average method

User Account

All Pages