Question: plz answer the 2 question 12. You bought on margin 250 shares of ZAIN stock at $60 per share. The initial margin was 40% and

plz answer the 2 question

12. You bought on margin 250 shares of ZAIN stock at $60 per share. The initial margin was 40% and the maintenance margin was 20%. At which of the following prices you will get a margin call? (2 Points) $22.22 $20.88 $29.85 $25.21 13. TMD Corporation is expected to pay a dividend of $3.00 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 17%. The stock of TMD Corporation has a beta of 0.75. Using the constant growth DDM, the intrinsic value of the stock is DI (2 Points) 53.33 47.50 . $0.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

kindly answer all the questions please, if not please dont take the question thanks! 1.On Jan 1, you sold short 400 shares of Microsoft at $60 per share. You post $12,000 to the margin account. On...

Candy Macy Ltd. It is January 7, 2018 and you, an associate at Parkhurst & Loewen, are meeting with your manager, Sylvia Marten, CA, and with Jacques Maier, CMA, controller of Candy Macy Ltd. (CML)....

The due date for this homework is posted on Canvas and is usually due prior to beginning of the \ next class session. Compile your answers into a single PDF file and upload to Canvas.\ 1. Recently,...

5 Suppose that you sell short 250 shares currently selling for S20 per share. Your broker requires 40% initial margin "' which you covered using the T-bills in your account. beginning of the year,...

One year ago you bought 250 shares of stock for 88.00 per share on margin (your initial margin was 65% ). Over the year, the interest you paid on the margin loan was 60 but you have received...

Asher opened an account to short-sell 1,000 shares of HuluPrime at $60 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of HuluPrime...

Assume you sold short 100 shares of common stock $40 per share. The initial margin is 60% and the maintenance margin is 20% At what stock price level would you got a margin call? Assume the stock...

Donald opened an account to short-sell 2,000 shares of XYZ at $60 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of XYZ has risen...

Assignment 1 Instructions Assignment 1 should be submitted after you have completed Unit 2. This assignment is worth 15 percent of your final grade. Assignment 1 contains five problems. The maximum...

Been working this question and I have checked my answers. The answers are correct with the exception of a) cash flow, d) operating cash flow and f) IRR and NPV. I have attached my worksheet and would...

A criminologist studying criminal offenders who have a record of one or more arrests is interested in knowing whether the educational achievement level of the offender influences the frequency of...

Access the July 30, 2013, 10-K filing (for year-end June 30, 2013) of Microsoft (MSFT) at www.SEC.gov. Review its note 4, Investments. Required 1. How does the cost-basis total amount for its...

4. What would be the earliest retirement age? Would there be provisions for early retirement?

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

4. How much of a competitive advantage is software providing for automakers? Explain your answer.. As the smartphone market continues to expand, another industry has begun getting smarter with...

3. What value chain activities are involved in enhancing cars with software? As the smartphone market continues to expand, another industry has begun getting smarter with software and apps: the...

2. How are the automakers benefiting from software enhanced cars? How are customers benefiting? As the smartphone market continues to expand, another industry has begun getting smarter with software...