CFP Exam
Lisa purchased 500 shares of XYZ stock trading at $40 per share, with an
initial margin requirement of 60% and a maintenance margin of 30%. At
What price would Lisa receive a margin call?
A. $20
B. $22.86
C. $57.14
D. $80.00 - ✓✓B. $22.86
40*(1-.60)/ 1-.30= 22.86
Lareen purchased 1000 shares of CWC stock for $80 per share with an initial
margin requirement of 65% and a maintenance margin of 40%. Assume the
stock price falls to $30 per share, how much equity must Laureen contribute?
A. $2/share
B. $8/share
C. $10/share
D. $12/share - ✓✓C. $10 per a share
Required Equity Actual Equity
Price: 30 Price: 30
, Main. Margin *.40 Debt: (28)
Required Equity 12 Actual: $2
Debt = $80* (1-.65) = $28
Required - Actual = contribution amount 12-2=10
MSFT declared a dividend payable to shareholders on the record date of Wed.
May 15th. Which is the last possible date an investor could purchase the
stock and still receive the dividend?
A. purchased on May 13th
B. purchased on May 12th
C. purchased on May 11th
D. purchased on May 10th - ✓✓D. May 10th.
Ex dividend date would be Monday the 13th, and in order to receive the
dividend the investor would have to purchase prior to the ex-dividend date.
Since the 13th is a Monday the last possible date an investor could purchase
the stock and still receive the dividend would be Friday the 10th.
If June 4 is the date of record, when must Joe purchase the stock in order to
receive the dividend?
A. June 1
B. June 2
C. June 3
D. June 4
E. May 31 - ✓✓A. June 1st
Lisa purchased 500 shares of XYZ stock trading at $40 per share, with an
initial margin requirement of 60% and a maintenance margin of 30%. At
What price would Lisa receive a margin call?
A. $20
B. $22.86
C. $57.14
D. $80.00 - ✓✓B. $22.86
40*(1-.60)/ 1-.30= 22.86
Lareen purchased 1000 shares of CWC stock for $80 per share with an initial
margin requirement of 65% and a maintenance margin of 40%. Assume the
stock price falls to $30 per share, how much equity must Laureen contribute?
A. $2/share
B. $8/share
C. $10/share
D. $12/share - ✓✓C. $10 per a share
Required Equity Actual Equity
Price: 30 Price: 30
, Main. Margin *.40 Debt: (28)
Required Equity 12 Actual: $2
Debt = $80* (1-.65) = $28
Required - Actual = contribution amount 12-2=10
MSFT declared a dividend payable to shareholders on the record date of Wed.
May 15th. Which is the last possible date an investor could purchase the
stock and still receive the dividend?
A. purchased on May 13th
B. purchased on May 12th
C. purchased on May 11th
D. purchased on May 10th - ✓✓D. May 10th.
Ex dividend date would be Monday the 13th, and in order to receive the
dividend the investor would have to purchase prior to the ex-dividend date.
Since the 13th is a Monday the last possible date an investor could purchase
the stock and still receive the dividend would be Friday the 10th.
If June 4 is the date of record, when must Joe purchase the stock in order to
receive the dividend?
A. June 1
B. June 2
C. June 3
D. June 4
E. May 31 - ✓✓A. June 1st
