Lauren purchase using the maximum allowable margin

Assignment Help Management Theories
Reference no: EM13659927

Lauren has a margin account and deposits $50,000. Assuming the prevailing margin requirement is 40 percent, commissions are ignored, and The Gentry Shoe Corporation is selling at $35 per share:

a. How many shares of Gentry Shoe can Lauren purchase using the maximum allowable margin?

b. What is Lauren's profit (loss) if the price of Gentry's stock

(1) Rises to $45?

(2) Falls to $25?

c. If the maintenance margin is 30 percent, to what price can Gentry Shoe fall before Lauren will receive a margin call?

 

 

Reference no: EM13659927

Questions Cloud

Define the carboxylate ion instead of the carboxylic acid : Explain which of the following conditions would favor the carboxylate ion instead of the carboxylic acid.
What is your rate of return on the investment : What is your rate of return on the investment?
Differences and similarities of pedro and johnbrown : Explain what are the differences and similarities of Pedro and JohnBrown, particularly in relation to their relationships with Tita.
Explain what amount of hydrogen measured at stp : The purity of a sample containing zinc as well as weighing 0.198 g is determined by measuring the amount of hydrogen formed while the sample reacts with an excess of hydrochloric acid.
Lauren purchase using the maximum allowable margin : a. How many shares of Gentry Shoe can Lauren purchase using the maximum allowable margin?
Explain which element is the central atom : Explain which element is the central atom, define how many bonds does the central atom form, is it polar or non-polar, define what the direction of negativity is
Define what is the half life in days of fe-59 : Define a sample of Fe-59 initially registers 125 counts per second on a radiation counter. After 10 days the sample registers 107 counts per second. Define what is the half life in days of Fe-59
Define what the direction of negativity : Which element is the central atom, explain how many bonds does the central atom form, is it polar or non-polar, define what the direction of negativity is
Explain which isotopes would reach the detector first : If Cl2 gas was separated utilizing a time-of-flight mass analyzer, explain which isotopes would reach the detector first

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

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