Assume that your brokerage company requires an initial margin of 60% and a maintenance margin of 35%. Assume further that you want to buy 800 shares of Madoka Corp.at $70 per share.

A. How much debt could you borrow?

B.Below what price would you receive a margin call?

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

D. (From C.) Show that you are at a 35% margin.