Sara Sanders Purchased 50 Shares Of Apple Stock At 189 86 Per Share Using The Prevailing Minimum Initial Margin Require 1 (22.97 KiB) Viewed 35 times
Sara Sanders Purchased 50 Shares Of Apple Stock At 189 86 Per Share Using The Prevailing Minimum Initial Margin Require 2 (21.38 KiB) Viewed 35 times
Sara Sanders Purchased 50 Shares Of Apple Stock At 189 86 Per Share Using The Prevailing Minimum Initial Margin Require 3 (21.38 KiB) Viewed 35 times
Sara Sanders purchased 50 shares of Apple stock at $189.86 per share using the prevailing minimum initial margin requirement of 51% She held the stock for exact) 6 months and sold it without any brokerage costs at the end of that penod. During the 6-month holding period, the stock paid $153 per share in cash dividends. Sara was charged 51% annual interest on the margin loan. The minimum maintenance margin was 25% a. Calculate the initial value of the transaction the debit balance, and the equity position on Sara's transaction b. For each of the following share prices, calculate the actual margin percentage, and indicate whether Sara's margin account would have excess equity, would be restricted or would be subject to a margin call (1) $175 62 (2) 5207 06, and (3) S121 93 c. Calculate the dollar amount of (1) dividends received and (2) interest paid on the margin loan during the 6 month holding period d. Use each of the following sale prices at the end of the 6-month holding period to calculate Sara's annualized rate of return on the Apple stock transaction (1) $184 37. (2) $195 29, and (3) S205 32
The pur Sua Sanders purchased 50 shares of Apple stock at $189.86 per share using the prevailing minimum initial margin requirement of 51%. She held the stock for exactly 6 months and sold it without any brokerage costs at the end of that period During the month holding period, the stock paid $1 53 per share in cash divide Sara was charged 5.1% annual interest on the margin loan. The minimum maintenance margin was 25% fing with you a. Calculate the initial value of the transaction, the debt balance, and the equity position on Sarastruction the settings b. For each of the following she prices, calculate the actualmgin percentage and indicate wheth Sara's magn account would have cessequaty, wld be restricted, or would be subject to a magna (1) 517562, (2) $207 95, and (3) $121.93 Each of Trade c. Calculate the dollar amount of (1) dividends received and (2) interest pard on the main toon during the month holding period will be d. Use cach of the following sale prices at the end of the month holding period to calculate Sara's sized rate ofretum on the Apple stock transaction (1) $184.37 (2) 5195 29, and (3) 5206 32 I will pos
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