Question: Answer these correctly and show all steps with formuals and i will leave a like. Suppose you bought 50 shares of the Cheesecake Factory (ticker

Answer these correctly and show all steps with formuals and i will leave a like.
Answer these correctly and show all steps with formuals and i will
leave a like. Suppose you bought 50 shares of the Cheesecake Factory

Suppose you bought 50 shares of the Cheesecake Factory (ticker symbol CAKE) stocks at \$32 per share using a 50% initial margin. That is, 50% of the purchase is financed with a loan, and the other 50% is your own equity. If I will face a margin call when equity hits 25%, at what price will I get a margin call? (Ignore margin interest charges, transaction cost, and dividends) Show your work (either in formula or calculator inputs \& outputs) to receive full score. Hint: work on the chapter exercise problems first. Assume I open a margin account with a $3,000 deposit. I short 10 shares of Tesla @ $200 and buy 25 shares of Google at $100 (assume neither stock pays dividends, and that there is no transaction cost for all orders). Assume a 5% annual rate on margin loans. A year later. Tesla is trading for $175 and Google is trading for $80. What is your return on your $3,000 deposit? Show your work (either in formula or calculator inputs \& outputs) to receive full score. Hint: work on the chapter exercise problems first

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