Data: Stock Price: 142.02 Quantity: 2600 Initial margin requirement to calculate
ID: 2648231 • Letter: D
Question
Data:
Stock Price: 142.02
Quantity: 2600
Initial margin requirement to calculate loan = 50%
Commission cost = 7.95
A borrowing rate of 2% during your investment period, no matter how long is your borrowinga borrowing rate of 2% during your investment period, no matter how long is your borrowing
Formulae to calculate net value of asset: (Quantity * price) - commission cost - Loan - Interest costs
Answer for this question: 149736.5
My question is this: How to get an answer of 149736.5? Please provide step-by-step calculation clearly.
The clearest one will be choosen.
Explanation / Answer
Stock Price 142.02 No of shares 2,600.00 Total Purchase cost(142.02*2600) 369,252.00 Commission @7.95 per share(2,600*7.95) 20,670.00 Total purchase cost incl comm 389,922.00 Loan @50% 194,961.00 Intt @ 2% on Loan 3,899.22 Net value of asset: (Quantity * price) - commission cost - Loan - Interest costs 369,252 - 194,961 - 20,670 - 3,899.22 Net value of asset: (Quantity * price) - commission cost - Loan - Interest costs 149,721.78
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