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The initial margin requirement on a stock purchase is 25%. Mario fully uscs the margin allowed to purchase 100 shares of the stock at $25.

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The initial margin requirement on a stock purchase is 25%. Mario fully uscs the margin allowed to purchase 100 shares of the stock at $25. (30 points) a. Construct the balance sheet for Mario's transaction. (10 points) b. Construct the balance sheet if the price drops to $22. (10 points) c. What is Mario's current margin and rate of retum for part b? (10 points) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

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