b. Construct the balance sheet that corresponds to the transaction described in requirement a. Assets Liabilities and Equity Stock Short position (100 shares) T-bills Equity Total assets Total liabilities and equity c. Now suppose the price of the stock falls to $78 per share. What is your current margin percentage? (Round your answer to decimal places.) Margin percentage % d. The maintenance margin is 30%. At what stock price would you get a margin call? (Round your answer to 2 decimal places Stock price

b. Construct the balance sheet that corresponds to the transaction described in requirement a. Assets Liabilities and Equity Stock Short position (100 shares) T-bills Equity Total assets Total liabilities and equity c. Now suppose the price of the stock falls to $78 per share. What is your current margin percentage? (Round your answer to decimal places.) Margin percentage % d. The maintenance margin is 30%. At what stock price would you get a margin call? (Round your answer to 2 decimal places Stock price

Name: Suppose that you just short sold 100 shares of Quiet Minds stock for $
Uploaded: 2024-03-20T06:33:21.000Z
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Description: Suppose that you just short sold 100 shares of Quiet Minds stock for $86.00 per share. Required:a. If the initial margin requirement is 60%, how much equity must you invest? b. Construct the balance sheet that corresponds to the transaction described

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...

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