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24. An investor owns 2,500 shares of ABC Corp stock (ABC) purchased using their capital and a margin loan. They owe their broker 50,000 for
24. An investor owns 2,500 shares of ABC Corp stock (ABC) purchased using their capital and a margin loan. They owe their broker 50,000 for the margin loan. The maintenance margin is 30%. At what stock price will the investor receive a margin call? A. 15.38 B. 17.57 C. 20.00 D. 28.57 25. An investor recently opened a brokerage account with $200,000 of cash and utilized the full margin borrowing capacity available through their broker. The investor borrowed their full capacity with an initial margin of 50%. They owe interest to the broker at 6% annually. The maintenance margin is 25%. The current market price of NEWC is $40.00. Compute their holding period return for 4 months assuming the price of NEWC is $42 at that time. A. 4.00% B. 8.0% C. 10.0% D. 12.0% E. 16.0%
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