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You purchased 30 shares of stock X at $200 using a leverage ratio of 2. The broker charges 4% on the margin loan, payable at
You purchased 30 shares of stock X at $200 using a leverage ratio of 2. The broker charges 4% on the margin loan, payable at the end of the year and requires a maintenance margin ratio of 35%. Suppose the stock paid $1 dividend per share at the end of the year and the price declined sharply. When the stock price drops below $ ______ you will receive the margin call
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