question archive Rachel buys 3,500 shares of Samson Inc
Rachel buys 3,500 shares of Samson Inc
Subject:FinancePrice: Bought3
Rachel buys 3,500 shares of Samson Inc. when they are trading at $29.00 per share. Samson is eligible for 50% margin and Rachel contributes the minimum amount necessary. a. How much did Rachel contribute toward the purchase?- b. The shares increase in value to $44.95 and Rachel sells. What was Rachel's return on investment prior to interest and brokerage charges?" c. Assume Rachel did not sell and the shares drop in value to $27.55 per share. i. Will there be a margin call? Yes, there will be a margin call." No, there will be no margin call. ii. If so, what is the minimum number of shares the broker will sell?
