Escolar Documentos
Profissional Documentos
Cultura Documentos
= 10.67%
[(500 $40) $5,400] $15,000
$15,000
= 2.67%
[(500 $36) $5,400] $15,000
$15,000
=
16.00%
E- Continue to assume that a year has passed. How low can Intels
price fall before you get a margin call?
The value of the 500 shares is 500P.
Equity is (500P $5,400).
You will receive a margin call when:
500 P $5,400
500 P
= 0.25
2
P=
C. Redo parts (a) and (b), assuming that Intels dividend (paid at year-end) is $1 per
share.
(a) The rate of return:
Initial equity or initial margin = 15,000
New equity = total Assets stock owed - dividends
= (20,000 + 15,000) (500 * 44) -500 = 12,500
The rate of return is: 12,500 15000/15,000 = -16.7%
(b) Total assets are $35,000, and liabilities are (500P + 500)
3