Montaser purchased 300 shares of IBM common stock on margin at $60 per share. Assume the initial margin is 50% and the maintenance margin is 30%.

Below what stock price level would Montaser get a margin call? Assume the stock pays no dividend; ignore interest on margin

Answer for part 1

What will Montasers rate of return be if he sells the stock at $55 per share? Ignore interest on margin.

Answer for part 2