Question
You purchased 100 shares of Alibaba common stock on margin at $90 per share. Assume the initial margin is 60% and the maintenance margin is
You purchased 100 shares of Alibaba common stock on margin at $90 per share. Assume the initial margin is 60% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
