A. You purchased Super Sniffer (SNF) stock at $930 per share in a margin account with an initial margin requirement of 55%. If the account has a maintenance margin of 35%, how low can the stock price drop before a margin call is issued?

b. Despereaux Associates (DES) stock is selling at $53 per share. Your margin account currently has available cash of $15,000 and the initial margin requirement is 62%. Using your margin account, what is the maximum number of DES shares you can buy? Assume you can buy fractional shares.