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You purchase 500 shares of Johns Incorporated at $50 per share using an initial margin of 60%. Your maintenance margin is 25% and the minimum
You purchase 500 shares of Johns Incorporated at $50 per share using an initial margin of 60%. Your maintenance margin is 25% and the minimum initial margin is 50%.
A. How low can the stock price fall before you receive a margin call?
B. If the stock price falls to $21 a share, how much additional equity must you add to your account?
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