You purchased 100 shares of common stock on margin at $55 per share. Assume that the nitial margin is 60%, with the maintenance margin of 35%. If the price moves to $40 mer share, what would be the remaining equity margin in your account? Calculate the rice at which there will be a margin call?
You purchased 100 shares of common stock on margin at $55 per share. Assume that the nitial margin is 60%, with the maintenance margin of 35%. If the price moves to $40 mer share, what would be the remaining equity margin in your account? Calculate the rice at which there will be a margin call?
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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