Business, 26.02.2020 21:51 ReeseMoffitt8032

Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interest rate on margin debt is 6.25% per year. The maintenance margin is 30

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Answer from: rianna14

The price at which a margin call would be received is $28.929.

Explanation:

The stated question does not contain complete information. The remaining information is as follows.

Assume that you purchase 150 shares of RossCorp stock at $45 each by making a margin deposit of 55 percent. At what price would you receive a margin call?

The price is calculated using the formula for maintenance margin as follows.

Maintenance margin = Equity in account / Value of stock

Equity in account = (Shares purchased x Call price) - (Shares purchased x Remaining ratio x Sale price)

Equity in account = (150 x P) - (150 x 0.45 x 45)

= 150P - 3037.5

Value of stock = Shares purchased x Call price

= 150P

Inserting these values into the formula for maintenance margin:

0.3 = (150P - 3037.5) / 150P

45P = 150P - 3037.5

105P = 3037.5

P = 28.929

Hence, the price at which a margin call would be received is $28.929.

Answer from: Quest

answer: technology

hope i

-lavira: )

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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