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Author Question: Emily bought 200 shares of ABC Co. stock for $29.00 per share on 60% margin. Assume she holds the ... (Read 135 times)

xjustxicex

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Question 1

A restricted account is defined as a margin account wherein the equity is
◦ less than the initial margin amount.
◦ greater than the initial margin amount.
◦ less than the maintenance margin amount.
◦ greater than the maintenance margin amount.

Question 2

Emily bought 200 shares of ABC Co. stock for $29.00 per share on 60% margin. Assume she holds the stock for one year and that her interest costs will be $80 over the holding period. Ignoring commissions, what is her percentage return (loss) on invested capital if the stock price went down 10%?
◦ -32%
◦ -19%
◦ -16%
◦ -10%


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Marked as best answer by xjustxicex on Mar 29, 2022

KAyteeBee1129

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xjustxicex

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


jamesnevil303

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Reply 3 on: Yesterday
Excellent

 

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