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You want to buy 100 shares of Xilinx Inc. (NASDAQ: XLNX). The market price is $69. The initial margin requirement is 50%. The maintenance margin

You want to buy 100 shares of Xilinx Inc. (NASDAQ: XLNX). The market price is $69. The

initial margin requirement is 50%. The maintenance margin requirement is 30%. You want to get

the following information before you make an investment decision.

How much equity you must have in the account to initiate the position?

At what price will you get a margin call?

If the price of the stock falls to $45, what is the equity balance and margin ratio in the margin

account? How much funds you need to deposit to meet the margin requirement?

If you dont have extra funds to deposit, how many shares of XLNX

the broker will have to liquidate to maintain the margin account. Show the new balance sheet.

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