How many additional shares can bob buy

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Bob has $20,000 and want to buy the maximum amount of XYZ Stock's that he can. Hid margin A/C price XYZ is currently $30; the IMR is 45% & MMR is 25%. The broker charges 9% in loan's.

1) How many shares can Bob buy in margin?

2) If Bob wants to avoid a margin call, at what price should he place a Stop-sell order?

3) If the price XYZ; suddenly drops to $18 and Bob had forgot to place a stop-sell order. Calculate his margin call assuming he is an established client.

4) If after 4 month from the start XYZ is trading at $52; and Bob decides to pyramid his A/C; What will his A/C stokes look like? How many additional shares can Bob buy?

5) If Bob sell his shares of XYZ at Price $60 per share. Calculate his HPR & AHPR?

 

Reference no: EM13271717

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