Question based on share valuation

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Reference no: EM1313248

Multiple choice question based on share valuation.

You purchased 100 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below the stock price of __________ you would get a margin call. Assume the stock pays no dividend and ignore interest on margin.

A) $35.71

B) $42.86

C) $53.57

D) $57.14

Reference no: EM1313248

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