Yang Trading opens a brokerage account and purchases 300 shares of Dream Cloud shares at...

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Finance

Yang Trading opens a brokerage account and purchases 300 shares of Dream Cloud shares at Php 40 per share. Yang Trader borrows Php 4,000 from her broker. The interest rate on the loan is at 8%

a. What is the margin in Yang's account when she initially purchased the stock?
b. If the share price falls to Php 30 per share by the end of the year, what is the remaining margin in Yang Trading's account?
c. If the maintenance margin requirement is at 30%, at what price will Yang Trading receive a margin call?
d. What is the rate of return on this investment?

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