a Lauren has a margin account and deposits of $50,000 Assuming the initial margin requirements is 40 , and The Gentry Shoe Corporation is selling at $25 00 per share How many shares can Lauren purchase using the maximum allowable Margin b What are Lauren 's profit (loss) and the return on investmen...

a The initial margin requirement is 40 Therefore with ...

a. Lauren has a margin account and deposits of $50,000. Assuming the initial margin requirements is 40%,

Question:

a. Lauren has a margin account and deposits of $50,000. Assuming the initial margin requirements is 40%, and The Gentry Shoe is selling at $25.00 per share: How many shares can Lauren purchase using the maximum allowable Margin?
b. What are Lauren's profit (loss) and the return on investment if the price of Gentry's stock rises to $45 per share and at $20.00 per share?
c. If the maintenance margin is 30%, to what price can Gentry Shoe fall before Lauren will receive a margin call?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...