Joe wants to buy 120 shares of Company X at S50 per share using a margin account. The brokers initial margin requirement is 45%. Calculate the amount of money Joe must initially invest. (Note: Input your answer in XX format, e.g., 1000; round it to the nearest integer if an exact decimal answer is not available.)
Joe wants to buy 120 shares of Company X at S50 per share using a margin account. The brokers initial margin requirement is 45%. Calculate the amount of money Joe must initially invest. (Note: Input your answer in XX format, e.g., 1000; round it to the nearest integer if an exact decimal answer is not available.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Joe wants to buy 120 shares of Company X at S50 per share using a margin account. The brokers initial margin requirement is 45%. Calculate the amount of money Joe must initially invest. (Note: Input your answer in XX format, e.g., 1000; round it to the nearest integer if an exact decimal answer is not available.)
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