What is your new margin-will you subject to margin call

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1. Apisco Tiger Inc. just paid a dividend of $3.60 per share. The company expects dividends to grow at a constant rate of 4 percent per year forever. If one share of the company's stock is selling for $48.62, what is the investors' required rate of return on the stock?

2. Last Week, you sold short 300 shares of stock for $35 a share. The initial margin requirement is 65 percent and the maintenance margin is 30 percent. Today, that stock is selling for $38 a share. What is your new margin? Will you subject to a margin call?

Reference no: EM131870791

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