De trader opens a brokerage account and purchases 100 shares of internet dreams at $58...
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Accounting
De trader opens a brokerage account and purchases 100 shares of internet dreams at $58 per share. She borrows $2,200 from her broker to help pay for the purchase. The interest rate on the loan is 12%.
A. What is the margin in Des account when she first purchases the stock?
B. If the share price falls to $48 per share by the end of the year, what is the remaining margin in her account?
C. If the maintenance requirement is 30%, will she receive a margin call?
D. What is the rate of return on her investment?
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