Initial Margin = 60%

Maintenance Margin = 40%

Initial Price = $120

Expected Dividend = $2

1) You bought the stock on margin with the broker. At the end of 180 days the stock is selling for $116 and you received the $2 dividend. What is your HPR? What is your effective annual return on this investment? What is your new margin level? When (i.e. the new price level) will you get a margin call?

Initial Margin = 60% Maintenance Margin = 40% Initial Price = $120 Expected Dividend = $2 1) You bought the stock on margin with the broker. At the end of 180 days the stock is selling for $116 and you received the $2 dividend. What is your HPR? What is your effective annual return on this investment? What is your new margin level? When (i.e. the new price level) will you get a margin call