What is stock value when investor receives margin call

Assignment Help Financial Management

Reference no: EM131067148

If an investor would like to sell short shares originally valued at $20,000 in which his/her cash contribution is $10,000, what is the stock value when the investor receives a margin call if the maintenance margin 30%?

Reference no: EM131067148

Questions Cloud

Calculate the NPV of the project over ten-year horizon : A video rental store will cost $650,000 to open. Assuming annual sales of $1 million, variable costs of 35%, fixed costs of $300,000, depreciation of $100,000, and a tax rate of 35%, calculate the NPV of the project over a 10-year horizon (no inflati..

What is the profit or loss associated with copper : Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 63,700 pounds of copper. The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $..

What is the incremental savings of buying the valves : Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material $900 Direct labor 600 Variable overhead 300 Fixed costs. the space o..

Calculate the present value of growth opportunities : You expect Seton Venture to have a ROE of 18%, a beta of 1.25, an expected earnings per share (E1) of $4.73, and a stable retention ratio (b) of 70%. Calculate the intrinsic value estimate of Seton Venture stock (V0) according to the constant growth ..

What is stock value when investor receives margin call : If an investor would like to sell short shares originally valued at $20,000 in which his/her cash contribution is $10,000, what is the stock value when the investor receives a margin call if the maintenance margin 30%?

Should your company replace its year-old machine : One year ago, your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages and you can purchase it for $170,000 today. The market value today of the current machine ..

External financing sources-what must total asset turnover : A firm wishes to maintain an internal growth rate of 7.8 percent and a dividend payout ratio of 40 percent. The current profit margin is 6.2 percent, and the firm uses no external financing sources. What must total asset turnover be?

Proxy beta is : A proxy beta is:

The system requirements in terms of users training : Discuss the system requirements in terms of users training and requirements, ICT support, implementation timeframe, maintenance and costing requirements (5 marks)

User Account

All Pages