Question
You purchased 100 shares of ABC on margin at $60 per share. Assume the initial margin is 50%, and the maintenance margin is 25%. Below
You purchased 100 shares of ABC on margin at $60 per share. Assume the initial margin is 50%, and the maintenance margin is 25%. Below what stock price level would you get a margin call? Assume the stock pays $1 dividend; interest on margin is 6%.
Group of answer choices
$50.75
$40.00
None of the option is correct
$49.67
$42.86
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
