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John wants to buy shares of ABC Co . stock. The stock is currently trading at $ 5 0 per share. He currently has $

John wants to buy shares of ABC Co. stock. The stock is currently trading at $50 per share. He currently has $3,000 of cash in his account. He plans to buy stock on margin. This broker sets a minimum maintenance margin of 40%.
a. If his margin is going to be 60%, how many shares of stock will he buy?
b. The next day, before the market opens, ABC Co. announces that they are being sued. At 9:30 a.m., the market opens, and the stock drops to $33. How much is John's margin % now?
c. Based on the calculations in Part B, state if there will be a margin call.

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