How low can the price of each share of DEF

Assignment Help Financial Management

Reference no: EM13923607

Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?

Reference no: EM13923607

Questions Cloud

Calculate intrinsic value and time value of call-put options : Assume that the euro is trading at a spot price of USD/EUR 1.49. Further assume that the premium of an American call (put) option with an exercise price of $1.50 is 1.55 (3.70) cents. Calculate the intrinsic value and the time value of the call and p..

Accounts receivable using probability proportional : You are the auditor for a company and need to review the company's accounts receivable using probability proportional to size (PPS) sampling. In addition, the board of directors has requested that you and your team present an explanation of your P..

Individual and business tax accounting : You just hired a former individual tax preparer to be in your tax accounting department. While she has a degree in taxation, all her experience has focused on individual returns. To make sure she completely understands the differences between indi..

What is the standard deviation of your portfolio : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. What is the standard deviation of..

How low can the price of each share of DEF : Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?

Perceived corporate governance of the company : You have met with a potential client, who informs you that all the employees and officers of his company are bonded. For this reason, he is requesting that under these conditions that you not look at his company's system of internal control so his..

Contrast the different effect on short-term exchange rates : Contrast the different effect on short-term exchange rates of an increase in domestic real output under the BOP approach and the Monetary approach.

What was the balance of unilateral transfers for japan : The BOP of Japan showed the following entries for 2010: a capital account surplus of 50, a deficit in the services account of 15, and a trade deficit of 45. The change in the official reserves was zero. What was the balance of unilateral transfers fo..

Specific list of requirements for the ceo : You decide to prepare a specific list of requirements for the CEO so that if she agrees to overhaul the existing hodgepodge and create a truly functional MIS system, you are prepared.

User Account

All Pages