Old economy traders opened an account to short sell 1,500 shares of internet dreams at $50 per share. The initial margin requirement was 50% (pays no interest). A year later, the price of internet dreams has increased to $65 and the stock has paid a dividend of $1.50 per share.
a. What is the remaining margin in the account?
b. If the maintenance margin requirement is 30%, will old economy receive a margin call?
c. What is the rate of return on the investment
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Old economy traders opened an account to short sell 1,500 shares of internet dreams at $50 per share. The initial margin requirement was ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The party is in a franchise relationship that's paid for the rights to use resources supplied by another business entity is known as the
Answers (1)
Black Sparrow Aviation, Inc. is concerned they are not maintaining adequate liquidity. The accounting department has provided you, the newly hired finance manager, with the following ratios: 1. Current ratio 4.5 Industry norm 4.0 2. Quick ratio 2.
Answers (1)
Which of the following metrics measures the market value of the goods and services produced within a country over a one-year period? A) Purchasing power parity B) Gross domestic product C) Real income D) Balance of trade
No Answers
What are some characteristics of a wise money manager
Answers (1)
At the beginning of the current period, Swifty Corporation had balances in Accounts Receivable of $195,100 and in Allowance for Doubtful Accounts of $9,350 (credit). During the period, it had net credit sales of $745,500 and collections of $835,120.
Answers (1)
New Questions in Business
Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following costs were incurred: Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on
Answers (1)
Horatio Alger is the product manager for Brand X, a consumer product with a retail price of $1.20. Retail margins are 35% while wholesalers take an 11.5% margin.
Answers (1)
Explain what is meant by market research.
Answers (1)
Jean, a restaurant critic, publishes a review in a national daily that the sandwiches served at his friend's deli are usually not fresh. Tom, the owner of the deli, notices a significant decrease in customers after the review gets published.
Answers (1)
Why did the Soviet Union experience many surpluses and shortfalls? A) The labor force wasn't well educated B) The cold climate made farming hard C) Central planners could not manage every detail D) The country depended on imports to obtain resources.
Answers (1)