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You have a margin account with a balance of $150,000. The initial margin deposit is 60%...

You have a margin account with a balance of $150,000. The initial margin deposit is 60% and Plymouth Industried is currently selling at $50 per share. How many shares of Plymouth can you buy? Show your calculations.

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Expert Solution

Margin deposit Percentage =(Share Price*Number of Shares-Margin balance)/(Share Price*Number of Share)
60% =(50*N-150000)/50N
30N =50N-150000
50N-30N =150000
Number of Shares =150000/20 =7500

jeff jeffy answered 2 years ago
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