You purchased 100 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below the stock price of __________ you would get a margin call. Assume the stock pays no dividend and ignore interest on margin.
$35.71
$42.86
$53.57
$57.14
An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10% respectively. If the investor is in the 15% tax bracket, his after tax rates of return on the municipal and corporate bonds would be respectively
6.4% and 8%
6.8% and 10%
8% and 8.5%
8% and 10%
The NAV for a mutual fund was $10 at the beginning of the year and $12 at the end of the year. There were distributions of $2 per share at the end of the year. Compute the mutual fund return for the year.
20%
0
40%
15%