You purchased 100 shares of Apple common stock on margin at $100 per share. Assume the initial
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Question:
You purchased 100 shares of Apple common stock on margin at $100 per share. Assume the initial margin is 60% and the maintenance margin is 40%. (Assume the stock pays no dividends, and ignore interest on the margin loan.) (a) At what price will you get a margin call?
(b) What is your return when you get a margin call?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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