You borrow $210,000 in order to buy 15,000 shares of Megacorp stock. You also deposit the 50% initial margin requirement. Megacorp then immediately pays a dividend of $.50/share, which is deposited into your margin account and used to pay down a portion of the borrowed amount. If the minimum margin requirement is 35%, and Megacorp is your only holding in this account, at what price per share would you receive a margin call?

Answer rating: 100% (QA)

To determine at what price per share you would receive a margin call we need to calculate the minimu... View the full answer