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HIJ is currently selling for $ 1 0 per share. The security is eligible for 5 0 % margin. 1 , 0 0 0 shares

HIJ is currently selling for $10 per share. The security is eligible for 50% margin. 1,000
shares are bought with an initial deposit of $8,000.
a. What is the initial value of the loan at the time HIJ is purchased?
b. If the price of the stock goes down to $6.00, what will be the margin percentage in the
account?
c. At what price will the investor receive a margin call?
d. If the price falls to $8.50, what is the most the investor can withdraw from the account? If
they want to withdraw this amount, how many shares will they sell (whole number of
shares only)?
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