You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one: $12,000 $14,400 $14,800 $15,600 $12,800 Give typing answer with explanation and conclusion

You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one: $12,000 $14,400 $14,800 $15,600 $12,800 Give typing answer with explanation and conclusion

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 5P

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Question

You purchased 400 ordinary shares of GE Corporation at $60 per share. The initial margin is 60%. What is your initial equity in this investment? Select one:

$12,000

$14,400

$14,800

$15,600

$12,800

Give typing answer with explanation and conclusion

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