Maximum percentage decline in the stock

Assignment Help Financial Management

Reference no: EM131185363

You decide to buy 1,300 shares of stock at a price of $36 and an initial margin of 65 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 40 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Do not include a minus sign. Omit the "%" sign in your response.)

Stock price decline %

Reference no: EM131185363

Questions Cloud

Find the present value of the following ordinary annuities : Find the present value of the following ordinary annuities: a. $400 per year for 10 years at 10% b. $200 per year for 5 years at 5% c. $400 per year for 5 years at 0% d. Now rework parts a, b, and c assuming that payments are made at the beginning of..

What is the present value of this stream of payments : Suppose that you will receive annual payments of $17,000 for a period of 10 years. The first payment will be made 4 years from now. If the interest rate is 5%, what is the present value of this stream of payments?

What was the closing price for this stock : You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. 52-WEEK YLD VOL NET HI LO STOCK (DIV) % PE 100s CLOSE CHG 72.78 53.67 RJW 1.30 2.0 15 17,902 ?? − .38. What was the closing price for thi..

Potentially bullish signals for common shareholders : List 4 reasons that might motivate a firm to conduct a stock buyback. Which of these reasons are potentially "bullish" signals for common shareholders? Explain briefly. List 1 bullish, and 1 bearish, interpretation of a cash dividend increase.

Maximum percentage decline in the stock : You decide to buy 1,300 shares of stock at a price of $36 and an initial margin of 65 percent. What is the maximum percentage decline in the stock before you will receive a margin call if the maintenance margin is 40 percent?

Assets common stock total assets retained earnings : Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data: TOTAL ASSETS turnover: 1.5 Gross profit margin on sales: (Sales - COGS)/sales = 25%. Partial Income Stmt Info Sales..

What was the net income after-tax : Delta Ray Brands Corp. just completed their latest fiscal year. The firm had sales of $16,976,400. Depreciation and amortization was $846,300, interest expense for the year was $886,800, and selling general and administrative expenses totaled $1,447,..

Shares of common stock outstanding : Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate..

What is the minimum price you would accept to sell the bond : You just started work at a wealth management firm and your boss asks you to evaluate a 30-year bond with a face value of $1,000 that, according to the prospectus, you can purchase next month (01-June-2016) when it is initially issued. If the YTM is e..

User Account

All Pages