Question
Three months ago, you purchased 500 shares of PQU stock on margin at $40/share. The initial and maintenance margins are 60% and 45%, respectively. Your
Three months ago, you purchased 500 shares of PQU stock on margin at $40/share. The initial and maintenance margins are 60% and 45%, respectively. Your broker charges you a 4% annual interest rate on borrowed funds. You've received a $2 dividend per share over the course of your investment. PQU trades for $37/share today. Find your current margin. Round intermediate steps and your final answer to four decimals and enter your answer in decimal format
b/ Find the lowest price that PQU can trade for before you receive a margin call
c/ Find your ROIC if you choose to close your margin position today. Round intermediate steps and your final answer to four decimals and enter your answer in decimal format
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