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Please complete all the parts to this question. Handout: Chapter 2, Margin-Long Investor buys $10,000 worth of stock: 100 shares are $100 per share. The

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Handout: Chapter 2, Margin-Long Investor buys $10,000 worth of stock: 100 shares are $100 per share. The investor pays $6,000 and borrows the remaining $4,000 from a broker. (a) Fill in the initial balance sheet. Liabilities and Owners' Equity Loan from broker ?00 shares @ $100 per share 10,000 Equity nuship tbouo al 4101000 (b) Calculate the initial percentage margin. an (e) The price falls to $70 per share. Update the balance sheet to reflect this new informations 100 shares @ $70 per,00u Assets Liabilities and Owners' Equity Loan from broker share Equity 3000 $1,000 (d) What is the new percentage margin? From part (d), suppose your broker has a 50% margin requirement (currently you are at 42.86%). How much will you need to pay your broker to reach the maintenance margin; that is, your broker will exercise a margin call. 5100 TV Ty 0-50 0-4000 n0s (f) Suppose the maintenance margin is 30%. How far could the stock price fall before the investor would get margin call? Refer to the original problem in part (a). (g) Suppose the maintenance margin is 40%. How far could the stock price fall before the investor would get margin call? Refer to the original problem in part (a)

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