Suppose that you just purchased 250 shares of Beta Banana's stock for $70 per share. The...

 

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Suppose that you just purchased 250 shares of Beta Banana's stock for $70 per share. The initial margin requirement is 70.0%, which means the amount borrowed is $5.250. The corresponding balance sheet is below: Anota Liabilities and Equity Stock Total assets $ 17,500.00 $17,500.00 Loan from broker Equity Total liabilities and equity $ 5,250.00 $ 12,250.00 $ 17,500.00 Required: a. Now suppose the price of the stock falls to $41 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) b. Construct the balance sheet to show the current situation. Stock Total assets Assets Liabilities and Equity Loan from broker Equity Total liabilities and equity Suppose that you just purchased 250 shares of Beta Banana's stock for $70 per share. The initial margin requirement is 70.0%, which means the amount borrowed is $5.250. The corresponding balance sheet is below: Anota Liabilities and Equity Stock Total assets $ 17,500.00 $17,500.00 Loan from broker Equity Total liabilities and equity $ 5,250.00 $ 12,250.00 $ 17,500.00 Required: a. Now suppose the price of the stock falls to $41 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) b. Construct the balance sheet to show the current situation. Stock Total assets Assets Liabilities and Equity Loan from broker Equity Total liabilities and equity

Answer rating: 100% (QA)

a Calculate the current margin percentage Current v... View the full answer