Subham Hamal purchased 500 shares of BOK stock at Rs. 400 per share using initial margin requirement of 50 percent. He held the stock for exactly…

Subham Hamal purchased 500 shares of BOK stock at Rs. 400 per share using initial margin requirement of 50 percent. He held the stock for exactly four months and sold it at the end of that period. During the four-month holding period, the stock paid Rs. 11 per share in cash dividends. He was charged an 8% annual interest on the margin loan. The minimum maintenance margin was 25%.

a. Calculate the initial value of the transaction, the debit balance, and equity position on Subham's transaction. b. Calculate the actual margin percentage, and indicate whether Subham's margin account would have excess equity, would be restricted, or would be subject to margin call, if the stock price rises to Rs. 700 per share. c. Calculate the rupee amount of dividend received and interest paid on the margin loan during the four-month holding period.