How many may he purchase using a margin brokerage account

Reference no: EM13278844

Ehud Katz anticipates that the price of Trinity Technology stock will go up. Its current price is $55.50 per share and he has $3,330 to invest. How many shares may he purchase with a cash brokerage account? How many may he purchase using a margin brokerage account with a 60% margin requirement? If the per share price is $60.20 six months later when Ehud sells the shares, what is his annual yield in each case? Assume no dividends paid and that in the case of the margin account, Ehud has no cash flows to of from the margin account except that interest for the six months reduced the funds he received by $32. => I know shares are 60 and 100. That's easy enough. The yields are 17.65% and 28.04% respectively. Thanks.

Reference no: EM13278844

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