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Show work please, I want to learn! Suppose that Xtel currently is selling at $30 per share. You buy 1,000 shares using $20,000 of your
Show work please, I want to learn!
- Suppose that Xtel currently is selling at $30 per share. You buy 1,000 shares using $20,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.
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- If the maintenance margin is 30% how low can Xtels price fall before you get a margin call?
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Financial Management Of Financial Institutions
Authors: George H Hempel
1st Edition
0133159604, 9780133159608
