CFP Exam Questions With 100% Correct Answers
Diddy purchased 500 shares of XYZ stock trading at $40 per share. The initial margin
requirement is 60% with a maintenance margin of 30%. At What price would Diddy
receive a margin call?
A. $20
B. $22.86
C. $57.14
D. $80.00 - Answer B. $22.86
40*(1-.60)/ 1-.30= 22.86
Lareen purchases 1000 shares of CWC stock at $80 a share. The initial margin
requirement is 65% and the maintenance margin is 40%. How much equity must Laureen
contribute if the price of the stock declines to $30 a share?
A. $2/ share
B. $8/ share
C. $10/ share
D. $12/ share - Answer 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 - Answer D. May 10th.
Ex dividend date would fall on a Monday the 13th. In order to capture the dividend,
investor must buy prior to ex dividend date. Since it falls on a Monday, the latest that an
investor can buy and receive the dividend is Friday the 10th.
If June 4 is the date of record, before which date must Joe purchase the stock in order
to have the right to receive the dividend?
A. June 1
B. June 2
C. June 3
D. June 4
E. May 31 - Answer A. June 1st
Date of record minus 3 days. When buying a stock one needs to buy before the ex
dividend date in order to receive the dividend.
Diddy purchased 500 shares of XYZ stock trading at $40 per share. The initial margin
requirement is 60% with a maintenance margin of 30%. At What price would Diddy
receive a margin call?
A. $20
B. $22.86
C. $57.14
D. $80.00 - Answer B. $22.86
40*(1-.60)/ 1-.30= 22.86
Lareen purchases 1000 shares of CWC stock at $80 a share. The initial margin
requirement is 65% and the maintenance margin is 40%. How much equity must Laureen
contribute if the price of the stock declines to $30 a share?
A. $2/ share
B. $8/ share
C. $10/ share
D. $12/ share - Answer 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 - Answer D. May 10th.
Ex dividend date would fall on a Monday the 13th. In order to capture the dividend,
investor must buy prior to ex dividend date. Since it falls on a Monday, the latest that an
investor can buy and receive the dividend is Friday the 10th.
If June 4 is the date of record, before which date must Joe purchase the stock in order
to have the right to receive the dividend?
A. June 1
B. June 2
C. June 3
D. June 4
E. May 31 - Answer A. June 1st
Date of record minus 3 days. When buying a stock one needs to buy before the ex
dividend date in order to receive the dividend.
