Question
You purchased 80 shares of ABC common stock on margin at $100 per share. Assume the initial margin is 50% and the maintenance margin is
You purchased 80 shares of ABC common stock on margin at $100 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You will get a margin call if the stock price drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)
| $76.92 | ||
| $46.67 | ||
| $50.12 | ||
| $68.59 |
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
