What is your equity value-what is the new margin

Assignment Help Financial Management

Reference no: EM131976736

Kathryn purchased 800 shares of stock for $30 a share. The initial margin is 55 percent and the maintenance margin is 40 percent. (5 points)

a. Construct a balance sheet depicting this transaction. Label each item such as Equity and so on.

b. What is your equity value if stock goes up to $40 per share? What is the new margin?

c. What is your equity value if stock goes down to $25? What is the new margin?

d. If the stock price falls below _____ Kathryn will receive a margin call.

Reference no: EM131976736

Questions Cloud

What level of liquidity and solvency would you looking for : For this discussion, assume the role of an investor. How would you know whether the company you are considering to invest in has repurchased any.

Expected value and standard deviation for the portfolio : The correlation between the two stocks is 0.15. What are the expected value and standard deviation for the portfolio?

Compute the equivalent annual libor rates : Compute the equivalent annual LIBOR rates (i.e., LIBOR rates with annual compounding) appropriate for discounting cash flows in 2, 8, and 14 months.

Identify and describe the legal categories of a business : Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.

What is your equity value-what is the new margin : What is your equity value if stock goes down to $25? What is the new margin?

E value from the nernst equation : If your E value from the Nernst equation were increased by .09V, what would your Q ratio be?

Develop closure for each candidate key you have discovered : Give the candidate keys for the ABC relation. In your working, show how you develop the closure for each candidate key you have discovered.

What is the anode and what is the cathode : Given the following half cells: Ce3+/Ce4+ and Pd/Pd2+, determine; a) what is the anode and what is the cathode, b) what is Eo, c)what is ?Go and k?

Couple wishes to borrow money using the equity : A couple wishes to borrow money using the equity in their home for collateral. How much (to the nearest dollar) will they receive?

User Account

All Pages