Question
Kathy Smith has a margin account with a balance of $60,000. If initial margin requirements are 80 percent, and Jackson Industries is currently selling at
Kathy Smith has a margin account with a balance of $60,000. If initial
margin requirements are 80 percent, and Jackson Industries is
currently selling at $40 per share.
If the maintenance margin is 25 percent, to what price can Jackson
Industries fall before Kathy receives a margin call?
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Financial Management In The Sport Industry
Authors: Matthew T. Brown, Daniel A. Rascher, Mark S. Nagel, Chad D. McEvoy
3rd Edition
0367321211, 978-0367321215
