Question
You bought 1000 shares of XYZ common stock with a margin of $45 per share. Assume that the stock does not pay dividends and does
You bought 1000 shares of XYZ common stock with a margin of $45 per share. Assume that the stock does not pay dividends and does not charge margin interest.
a)If the initial margin is 45%, what will be the maintenance margin if a margin call is made at a share price of $30?
b)If you sell the stock at $35 a share, what is your rate of return?
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
