Lauren has a margin account and deposits $35,000. Assume the prevailing margin requirement is 25 percent, commissions are ignored, and the Gentry Wine Corporation is selling at $40 per share.

1-How many shares can Lauren purchase using the maximum allowable margin? Round your answer down to the nearest whole share, if necessary.

shares

2-What is Laurens profit (loss) if the price of Gentrys stock

1-rises to $45? Use a minus sign to enter loss, if any. Round your answer to the nearest dollar. Use the rounded value of the number of shares from part a.

2-falls to $35? Use a minus sign to enter loss, if any. Round your answer to the nearest dollar. Use the rounded value of the number of shares from part a.

$

3-If the maintenance margin is 15 percent, to what price can Gentry Wine fall before Lauren will receive a margin call? Round your answer to the nearest cent. Use the rounded value of the number of shares from part a.

$