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BabaBlast [244]
3 years ago
13

You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance ma

rgin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.
Business
1 answer:
Misha Larkins [42]3 years ago
4 0

Answer:

$50

Step by Step Explanation:

100 shares × $70 = $7,000

$7,000 × 0.5 = $3,500 (loan amount)

0.30 = (100P −$3,500)/100P

0.30×100P= 30P

30P = 100P −$3,500

30P- 100P= -70P

−70P = −$3,500

-3500/-70P = $50P

P = $50

The stock price level someone would get a margin call Assuming the stock pays no dividend is $50

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3 years ago
____________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy th
serg [7]

Answer:

Business analysis

Explanation:

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5 0
3 years ago
Pam sees that the price of bananas has risen in the grocery store. All else equal, she decides to buy more tangerines than she n
Katyanochek1 [597]

Answer:

Option (c) is correct.

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A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
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3 years ago
A 38-year-old investor places $25,000 into a single premium qualified deferred variable annuity. Twenty years later, with the ac
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