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Problem:
Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60? Please provide all calculation and methods to solve it.
Basic Finance, Finance
You need $5,000 to buy a new stereo for your car. If you have $1,500 to invest at 6% compounded annually, how long will you have to wait to buy the stereo? All work and formulas leading up to the answer have to be shown
Capital Budgeting Problem - NPV & Tax Obunkem Manufacturing - a producer of Computer & Accessories is considering setting up a new production plant at its location in Pretoria, South Africa at the cost of $32, 400 millio ...
A check cashing company will give you $101 in cash and you repay them $120 in two weeks. What is the effective annual rate of interest for this arrangement?
"Shareholder wealth" in a firm is represented by: a) The number of people employed in the firm. b) The book value of the firm's assets less the book value of its liabilities. c) The amount of salary paid to its employees ...
Friendly's Shoe Store has earnings before interest and taxes of $20290 and net income of $10000. The tax rate is 34 percent. What is the times interest earned ratio? Round your answer to the nearest hundredth.
COWCOR COPR has a market debt-equity ratio of 1.00 a corporate tax rate of 35% and pays 7% interest on its debt. By what amount does the interest tac shield from its debt lower COWCOW's WACC? WACC IS LOWERED BY ___%. (Ro ...
Assuming interest and dividends are paid annually, calculate the annual holding period return on each security. Round answer to 1 decimal place. Stock 1: beginning of year price 44.00, end of year price 48.25, interest/d ...
Are there risks involved in investing in security markets? Can someone explain what is a risk-return tradeoff? Lastly are risks ever mitigated with diversification and time?
(a) What is the purpose of credit analysis? Discuss the importance of performing a credit analysis if you are suppliers of credit (i.e., commercial banks, non-bank private financing entities).
Use the bond-yield-plus-risk-premium method to estimate the cost of equity for Galveston Corp. A US Treasury bond yields 2.4%, the long-term bond for Galveston yields 4.4%, Galveston's beta is 1.2, the market risk premiu ...
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