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You start with $10,000 to invest. You have decided to buy McDonalds (MCD) on margin. Your broker requires an initial margin of 50%. Currently,

 

You start with $10,000 to invest. You have decided to buy McDonalds (MCD) on margin. Your broker requires an initial margin of 50%. Currently, MCD is trading for $250 per share. You borrow the maximum amount from your broker and invest it all in MCD. In one month, MCD falls to $225 per share. What does your margin percent fall to?

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