Ask Question
BusinessBusiness
7 August, 05:04

Taylor Industries stock is selling for $32 a share. You would like to purchase as many shares of this stock as you can. Your margin account currently has available cash of $6,200 and the initial margin requirement is 60 percent. What is the maximum number of shares you can buy

+2
Answers (1)
  1. 7 August, 08:28
    0
    322 shares

    Explanation:

    When you buy on the margin, your broker will lend you money to purchase the stocks that you need.

    Since you have $6,200 on your margin account and your margin requirement is 60%, your maximum purchase = $6,200 / 60% = $10,333.33

    With $10,333.33 you can buy ⇒ $10,333.33 / $32 = 322.92 ≈ 322 shares

    We have to round down to the last full share.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Taylor Industries stock is selling for $32 a share. You would like to purchase as many shares of this stock as you can. Your margin account ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
What is the mission of a company
Answers (1)
An analysis of the general ledger accounts indicates that delivery equipment, which cost $75,000 and on which accumulated depreciation totaled $58,000 on the date of sale, was sold for $20,200 during the year.
Answers (1)
Use the following information to prepare a classified balance sheet for Alpha Co. at the end of Year 1.
Answers (1)
In the long run, an increase in the saving rate Group of answer choices doesn't change the level of productivity or income. raises the levels of both productivity and income. raises the level of productivity but not the level of income.
Answers (1)
The accounts receivable balance for Renue Spa at December 31, 2017, was $61,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $3,750. During 2018, $2,100 of accounts receivable were written off as uncollectible.
Answers (1)
New Questions in Business
The preferred stock of General Motors pays an annual dividend of $1.6 forever. The appropriate discount rate is 7% per year. Attempt 1/3 for 10 pts. Part 1 What is the present value of all dividends
Answers (1)
Which of the following are not directly involved in the revenue cycle? A. Sales manager and the credit manager. B. Chief financial officer and controller. C. Billing clerk. D. Receiving department clerk.
Answers (1)
Keiko manages a team of graphic designers. She distributes a document describing in detail each task for an upcoming project. Each task is assigned to a specific member of her team. What aspect of setting expectations does this accomplish?
Answers (1)
What position is typically responsible for general financial accounting, managerial accounting, and tax reporting? a. controller b. treasurer c. audit committee d. cfo?
Answers (1)
Activity sequencing involves reviewing the activity list and attributes, project scope statement, and milestone list to determine the relationships or dependencies between activities. a. Trueb. False
Answers (1)
Home » Business » Taylor Industries stock is selling for $32 a share. You would like to purchase as many shares of this stock as you can. Your margin account currently has available cash of $6,200 and the initial margin requirement is 60 percent.
Sign Up Forgot Password?