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.)
| $68.59 | ||
| $76.92 | ||
| $50.12 | ||
| $46.67 |
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
