Solved: Shares lauren purchase using maximum allowable margin, Finance Basics

+44 141 628 6080
[email protected]

Shares lauren purchase using maximum allowable margin

Question: Lauren has a margin account and deposits of $50,000. Assuming the initial margin requirements is 40%, and The Gentry shoe corporation is selling at $25.00 per share:

How many shares can Lauren purchase using the maximum allowable Margin?

What are Lauren's profit (loss) and the return on investment if the price of Gentry's stock rises to $45 per share and at $20.00 per share?

If the maintenance margin is 30%, to what price can Gentry Shoe fall before Lauren will receive a margin call?

View Complete Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Shares lauren purchase using maximum allowable margin

Reference No:- TGS02082679

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What is the investment in baskett balance

What is the Investment in Baskett balance in Ace's financial records as of December 31?

Q : Madison cure for his concerns regarding factionalism

How does campaign finance reform correlate to Madison's cure for his concerns regarding factionalism?

Q : Use of technology in the workplace

With the increasing use of technology in the workplace, determine if workplace security is getting easier or more difficult for organizations to manage.

Q : How universal design will impact practices as a teacher

Discuss, with specific examples, how universal design will impact your practices as a teacher.

Q : Shares lauren purchase using maximum allowable margin

How many shares can Lauren purchase using the maximum allowable Margin?

Q : Appropriate set of investment objectives

Identify and describe an appropriate set of investment objectives and constraints for the Smith's

Q : Calculate the value of bonds or preferred stock

Why is it more difficult to calculate the present value of common stock than it is to calculate the value of bonds or preferred stock?

Q : How much external fund does charming florist need

1. Based on Ms. Colby's forecast, how much external fund does Charming Florist need? 2. Reconstruct the current balance sheet based on the projected figures.

Q : What paid for in the current quarter

If a firm pays its bills with a 30 day delay, what fraction of its purchases will be paid for in the current quarter?

1954443

Questions
Asked

3,689

Active Tutors

1454956

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Identify a true statement about validity

Question: Identify a true statement about validity as applied to a test. Multiple choice question

Discuss three ethical guidelines that are important

Identify and discuss three ethical guidelines that are important to consider when designing an 8-week group for adolescents who are referred

Discuss social worker working with foster children

You are a social worker working with foster children. You are making a home visit to Katie, age nine, and her foster family.

Is early food experiences can impact development

Early food experiences can impact development over several learning domains, including Social and Emotional Development, Language

Examine historical literature to the most current period

Examine historical literature to the most current period to see the growth of romanticism and EXISTENTIALISM. any major developments

Discuss children diagnosed with developmental disabilities

When Min decided to begin his supervised field experience, he applied at a company in his hometown that provided applied behavior analysis

Identify one antecedent, one behaviour, and one consequence

Sahir is the most active student in your kindergarten class. He tends to be very disruptive when the teacher you work with is teaching the class,