Assume you have a 25 percent minimum margin standard in problems 1 and 2. With a price decline to $28, will you be called upon to put up more margin to meet the 25 percent rule? Disregard the $2,000 minimum margin balance requirement.
Answer to relevant QuestionsRecompute the answer to problem 3 based on a stock decline to $23.75. Gill Thomas is in the 35 percent tax bracket. Her long-term capital gains tax rate is 15 percent. She makes $16,200 on a stock trade. Compute her tax obligation based on the following holding periods: a. 6 months. b. 14 ...Are earnings of mutual funds normally taxed at the fund level or the shareholder level? The Twenty-First Century closed-end fund has $350 million in securities, $8 million in liabilities, and 20 million shares outstanding. It trades at a 10 percent discount from net asset value (NAV). a. What is the net asset ...a. If you purchased a low-load fund at $10.30 and it had a net asset value of $10.00, what is the percent load? b. If the fund’s net asset value went up by 33.72 percent, what would its new net asset value be? c. What is ...
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