An investor buys 100 shares of Walmart at $45 per share on margin with an initial margin

Fantastic news! We've Found the answer you've been seeking!

Question:

An investor buys 100 shares of Walmart at $45 per share on margin with an initial margin of 50% and a maintenance margin of 25% percent.

what price will a margin call occur?

Related Book For answer-question

Auditing An International Approach

ISBN: 978-0071051415

6th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

See More Books

Posted Date: Jun 01, 2023 06:34 AM

See More Questions

An investor buys 100 shares in a mutual fund on January 1, 2015, for $50 each. The fund earns dividends of $2 and $3 per share during 2015 and 2016. These are reinvested in the fund. The funds...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
An investor buys 100 shares of AT&T stock and records its price change daily. a. List several possible events for this experiment. b. Which concept of probability did you use in (a)?
More sophisticated computer-assisted instruction systems monitor the students performance over a period of time. The decision to begin a new topic is often based on the students success with previous...
Qamar, Inc., did not pay dividends in 2009 or 2010, even though 50,000 shares of its 6.5%, $50 par value cumulative preferred stock were outstanding during those years. The company has 800,000 shares...
In Exercises 2535, solve each system by the method of your choice. [2x + 3y = 21 |3x - 4y = 23 2
Consider the following cash flow profile, and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically...
Capital versus Revenue Expenditures On January 1, 2008, Jose Company purchased a building for $200,000 and a delivery truck for $20,000. The following expenditures have been incurred during 2010: ...
2) A math tutor makes $15.00 per hour in the tutoring lab at her school. She earns an additional $7.50 more per hour overtime for any hours worked which exceed her normal 40-hr work week. b) Write a...
The following language was in a handwritten agreement signed by Harold and Saul and their respective wives: Saul & Zelda get the option to rent the lower level of the Hope Chest store when their...
Jessica treated of all her friends to dinner. She has already spent her excess cash from her paycheck, so she decides to put it on a credit card and pay for it later. How long will it take to pay for...
30.0 50.0 N As you will see in FIGURE-1, A man cleaning a floor pulls a vacuum cleaner with a force of magnitude F= 50.0N at an angle of 30.0 with the horizontal. Calculate the work done by the force...
A stalled car was pushed to the top of a hill, allowed to roll down the hill and started by releasing the clutch. At which point did the car have the greatest amount of gravitational potential energy.
The length of the river span of a bridge is 2783.0 ft . . The total length of the bridge is 7988 ft . Convert the length of the river span of the bridge to meters.
High cholesterol in the blood can cause fatty deposits called plaques to form on the walls of blood vessels. Suppose a plaque reduces the effective radius of an artery by 3 0 % . What is the...
Which of these is NOT a marketing intermediary? A. Resellers OB. Marketing research firms OC. Suppliers OD. Physical distribution firms OE. Advertising agencies
QUESTION 5 The slowest cooling rate that yields the maximum martensitic transformation is termed the OI. relative II. terminal III. curie IV. critical QUESTION 6 Choose the microconstituent product...
1) Predict the organicproduct formed when BzCl reacts with cyclohexanol. BzCl = benzoylchloride. 2) Provide the majororganic product of the reaction below. 3) Draw the structureof the product formed...
Give some examples of periodic comparisons a company can perform. How do they control the accuracy of its financial records?
List the main supporting source documents used in a purchases, payables, and payments process.
The auditor is considering confirming zero-balance accounts from the auditees accounts receivable sub-ledger to provide evidence concerning the completeness assertion for accounts receivables and...
Martinez Company incurred the following costs during 2015 in connection with its research and development activities. Instructions Compute the amount to be reported as research and development...
For each of the following studies, identify the type of graph (histogram, time series graph, or scatter diagram) that would be the most appropriate. (You can use more than one graph of each type, for...
Explain the difference between artistic-related intangible assets and contract-related intangible assets.

An investor buys 100 shares of Walmart at $45 per share on margin with an initial margin

Question:

Expert Answer:

To determine the price at which a margin call will occur we need to calculate the equity percentage ... View the full answer

Auditing An International Approach

Students also viewed these accounting questions