Robert just made a margin purchase of 300 shares of Galaxy Corp. for $60 per share. The

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Robert just made a margin purchase of 300 shares of Galaxy Corp. for $60 per share. The initial margin is 70%. The maintenance margin is 30%.

How low can the price of each share of the stock be before he will have to add equity to his account?

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Investments

ISBN: 978-0077861674

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Posted Date: Apr 18, 2023 12:10 AM

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Robert just made a margin purchase of 300 shares of Galaxy Corp. for $60 per share. The

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we need to first calculate the initial margin which is the percentage of the purchase price that Rob... View the full answer

Investments

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