Question: 1 0 . You had $ 3 , 0 0 0 cash deposit in the margin account. You borrowed 2 0 0 shares of Doggie
You had $ cash deposit in the margin account. You borrowed shares of Doggie Treats Inc. stock from the broker and sold them at $ per share. The broker requires a maintenance margin. At the end of the year, Doggie Treats Ine. will pay a yearend dividend of $ per share If stock price drops to $ next year after the dividend payment, what will be the return rate of your deposited money? points After the yearend dividend payment, at what stock price will you get a margin call for the maintenance margin? points At what stock price in next year after dividend payment will the return rate be on your own money deposit? Hint: how much is your
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
