Assume that an investor buys 100 shares of stock at $35 per share, putting up a 75%

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Assume that an investor buys 100 shares of stock at $35 per share, putting up a 75% margin.

a. What is the debit balance in this transaction?

b. How much equity funds must the investor provide to make this margin transaction?

c. If the stock rises to $55 per share, what is the investor's new margin position?

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Related Book For answer-question

Fundamentals Of Investing

ISBN: 9780134083308

13th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Dec 15, 2016 09:22 AM

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Assume that an investor buys 100 shares of stock at $35 per share, putting up a 75%

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