Assume that Manfred undertook the share investments as shown in Question 27 using the margin loan facility and that after a period of 12 months the share portfolio was valued as follows:
$$\begin{array} { | l | c | c | }
\hline \text { Details } & \text { Purchase Value (\$) } & \text { LVR (\%) } \
\hline \text { Amber Mining } & 12500 & 60 \% \
\hline \text { Hardly Normal Electrical } & 30700 & 60 \% \
\hline \text { Newstart Carparation } & 23800 & 70 \% \
\hline \text { Reglan Trading } & 22000 & 70 \% \
\hline
\end{array}$$ a) What is the maximum margin lending loan now available to Manfred?
b) Assuming that the current margin loan from Come in Spinner Financing was that previously calculated in Question 27, what are the implications for Manfred of the reassessed maximum margin lending loan? Show all calculations.
c) What options are available to Manfred given your discussion in part (b) of this question?

Question

Assume that Manfred undertook the share investments as shown in Question 27 using the margin loan facility and that after a period of 12 months the share portfolio was valued as follows:
 $$\begin{array} { | l | c | c | } 
\hline \text { Details } & \text { Purchase Value (\$) } & \text { LVR (\%) } \
\hline \text { Amber Mining } & 12500 & 60 \% \
\hline \text { Hardly Normal Electrical } & 30700 & 60 \% \
\hline \text { Newstart Carparation } & 23800 & 70 \% \
\hline \text { Reglan Trading } & 22000 & 70 \% \
\hline
\end{array}$$ a) What is the maximum margin lending loan now available to Manfred?
b) Assuming that the current margin loan from Come in Spinner Financing was that previously calculated in Question 27, what are the implications for Manfred of the reassessed maximum margin lending loan? Show all calculations.
c) What options are available to Manfred given your discussion in part (b) of this question?

Quizplus · Accepted Answer

The Answer of Assume that Manfred undertook the share investments as shown in Question 27 using the margin loan facility and that after a period of 12 months the share portfolio was valued as follows:
 $$\begin{array} { | l | c | c | } 
\hline \text { Details } & \text { Purchase Value (\$) } & \text { LVR (\%) } \
\hline \text { Amber Mining } & 12500 & 60 \% \
\hline \text { Hardly Normal Electrical } & 30700 & 60 \% \
\hline \text { Newstart Carparation } & 23800 & 70 \% \
\hline \text { Reglan Trading } & 22000 & 70 \% \
\hline
\end{array}$$ a) What is the maximum margin lending loan now available to Manfred?
b) Assuming that the current margin loan from Come in Spinner Financing was that previously calculated in Question 27, what are the implications for Manfred of the reassessed maximum margin lending loan? Show all calculations.
c) What options are available to Manfred given your discussion in part (b) of this question?

Assume That Manfred Undertook the Share Investments as Shown in Question