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uT tO Uledk-even? 2. Mr. John Smith purchases 250 shares of Davenport stock for $15,000 on the market on March 1st 2017. The brokerage firm
uT tO Uledk-even? 2. Mr. John Smith purchases 250 shares of Davenport stock for $15,000 on the market on March 1st 2017. The brokerage firm which facilitated the transaction has an initial margin requirem of 50%, and a maintenance margin requirement of 30%. To initiate the transaction and buy the 250 shares, Mr. Smith deci to borrow the cash to meet the initial margin requirement, and use cash for the other 50%. Question A: Assume now that the market declines, and the market price of the stock dips by 16.66667%. What would be th investor's new equity position be? (Show all calculations please Question B: What % of the market value of the stock does Mr Smith's equity position now represents
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