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
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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.)
$68.59
$76.92
$46.67
$50.12
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
