P2.9 Assume that an investor buys 100 shares of stock at $50 per share, putting up a

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P2.9 Assume that an investor buys 100 shares of stock at $50 per share, putting up a 70% margin.

a. What is the debit balance in this transaction?

b. How much equity funds must the investor provide to make this margin transaction?

c. If the stock rises to $80 per share, what is the investor's new margin position?

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Fundamentals Of Investing

ISBN: 9780136117049

11th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart

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