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You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow
You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 at an interest rate of 20% per year and invest $10,000 in the stock. The maintenance margin requirement is 30%. At which price would you receive a margin call after one year? $39.29 (B) $40.38 $41.29 (D) $42.86 E) None of the above choices is correct
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