Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. guaranteed like suppose that tesla inc stock (tsla

guaranteed like Suppose that Tesla Inc stock (TSLA) currently is selling at $799.5 per share....

60.1K

Verified Solution

Question

Finance

guaranteed like

Suppose that Tesla Inc stock (TSLA) currently is selling at $799.5 per share. You have $1,380,000 cash in your account. You are bullish on the stock and decided to take a position using all your money. Your financial advisor at TD Bank provided you with an options to invest:

Open a margin account, where you can invest with all your cash and also borrow additional amount from your broker to buy the shares. The initial margin requirement is 50%, and the minimum margin requirement is 30%. The interest rate charged on the margin loan will be 9% per year.

how much maximum you can borrow? How many shares maximum you can buy in the margin account? (4 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Prem Narayan, a graduate student in engineering, to market a radical new speaker he had designed...

Accounting
Q

Explain how the migration of an ovum through a fallopian tube is accomplished.

Medical Sciences
Q

Write the VHDL codes for (7494) 4 bit shift register using Behavioral style of modeling. this...

Electrical Engineering
Q

A mass m = 85 kg slides on a frictionless track that has a drop, followed...

Physics
Q

Crossland Construction’s design/build department allows their clients (owners) to select the design and construction team based on...

Accounting
Q

Vesicles are membranous sacs made up of a phospholipid bilayer used for transport of molecules...

Biology
Q

A particle moving with constant speed parallel to a smooth wall over a smooth horizontal...

Physics
Q

Find Circle Center and Radius from Equation General Form Jun 05 11 12 13 PM...

Algebra
Q

Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and,...

Accounting
Q

Problem 6-1B (Algo) Calculate ending inventory and cost of goods sold for four inventory methods...

Accounting
Q

Tom and Suri decide to take a worldwide cruise. To do so, they need to...

Accounting
Q

please answer the last question as soon as possible Culver Restaurant's gross payroll for...

Accounting