Answer questions below

Blank choices: Ginny (will/will not) receive a margin call

2. Stock transactions: Margin trading Suppose Ginny wants to purchase 80:] Shara of Hydroex stock at $5C- per share through Nevada Brokerage. The value of the shares is If Ginny does not have enough funding to purchase the shares herself, and Nevada Brokerage requires an initial margin of at least 50 percent, Ginny's initial equity investment would need to he at least in order for Nevada Brokerage to lend her the funds. If Ginny invests this amount, then Nevada Brokerage would cover the remaining . If the price of Hydroex's decreases to $50 per share, then the total value of Ginny's shares is now . As a result, Ginny still owes the brokerage rm , and as a result, her equity position is now , which represents of the market value of the stock. If Nevada Brokerage requires a maintenanoe margin of 3D peroent, then Ginny 7 receive a margin call from Nevada Brokerage. If Nevada Brokerage requires a 10 percent annual interest payment on the loaned funds, the shares paid out an annual divided of $2 per share, and IGinnviIr sold the shares at the end of the year Iwhen the price dropped to $50 per share, then what would her return on stocks purchased on margin he? 0 -39.50 percent 0 {15.57 percent O -33.00 percent 0 -29.34 percent If Ginny was able to fund the entirety of the stock purchase herself and sold the shares at the end of the year when the price dropped to $50 per sharer then what would her return on stocks purchased be? 0 -14.66 percent 0 -13.33 percent O -12.56 percent O -11.50 percent TnJe or False: Based on your calculations, it can be concluded that purchasing stock on margin results in fewer losses if the stock price decreases. 0 True O False