Assume that your brokerage company requires an initial margin of 57% and a maintenance margin of 32%. Assume further that you want to buy 1,500 shares of Minnie Corp. at $55 per share.)

A) Calculate the maximum amount of debt you can borrow. Assume you borrow that amount for the questions below.

B) Calculate the price below which you will receive a margin call, assuming you borrowed the amount of debt in a.

C) Show what the account balance sheet will look like if the stock reaches the price in b. above.

Stock Debt.

Equity

D) Assume the stock increases to $82.00 per share:

1. Show the new account balance sheet.

Stock Debt

Equity

2. Calculate the percentage gain or loss on the stock.