Dee Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share

Subject:FinancePrice:2.86 Bought12

Share With

Dee Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $30 per share. She borrows $5,000 from her broker to help pay for the purchase. The interest rate on the loan is 5% a. What is the margin in Dee's account when she first purchases the stock? Answer is complete but not entirely correct. Margin $ 58 b. If the share price fails to $19 per share by the end of the year, what is the remaining margin in her account? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Remaining 1.05 margin c. If the maintenance margin requirement is 30%, will she receive a margin call? Yes No d. What is the rate of return on her investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Rate of return 66.43 90