Question
Suppose a margin account has an initial margin requirement of 50% and a maintenance margin requirement of 25%. The account currently has a balance of
Suppose a margin account has an initial margin requirement of 50% and a maintenance margin requirement of 25%.
The account currently has a balance of $10000, so the initial buying power is $ ___
Suppose the total leverage is used to buy a stock at the price of $5.00/share. When the stock price falls below the critical price of $ ___ /share, a margin call will be sent to the account holder
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
