User Account

All Pages

What is the percentage increase in the net worth

Assignment Help Finance Basics
Reference no: EM132616742

Suppose that you sell short 1000 shares of Intel, currently selling for $20 per share, using $15000 of your own money, borrowing the remainder of the purchase price from your broker.

a. What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to : (i) $22; (ii) $25; (iii) 18.

b. If the maintenance margin is 25%, how low can Intel's price fall before you get a margin call?

c. How would your answer to (b) change if you had financed the initial purchase with only $10,000 of your own money?

Reference no: EM132616742

Questions Cloud

How aspect of your supplier code of conduct is committed : In your own words, explain how each aspect of your Supplier Code of Conduct is committed to ethical business practices and society's social responsibility.
Explain what is meant by a capital budget : What is a capital asset? Explain what is meant by a capital budget and present an argument to justify the development of capital budgets by governmental units
Explain the importance of pareto improvement : A public project produces the following individual benefits for stakeholders stated in terms of present values when an appropriate social discount rate of 15% i
Delivery marketplace mobile app project : Delivery Marketplace Mobile App Project - We are also looking to have a desktop application based on the delivery capabilities of the students in 3 months
What is the percentage increase in the net worth : Suppose that you sell short 1000 shares of Intel, currently selling for $20 per share, using $15000 of your own money, borrowing the remainder of the purchase p
What is the value of its pe ratio : Suppose that a public corporation has a total market value (according to its stock price and number of shares outstanding) of $750 million. If its current
Calculate the value of the treasury note : Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
Why the investment strategy signed by goldman sachs : Please describe and analyze the reasons why the investment strategy signed by Goldman Sachs and Libya in 2008 caused the heavy
What is the average investment in accounts receivable : The Malibu Corporation has annual credit sales of $35 million. The average collection period is 37 days. What is the average investment in accounts receivable

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd