You open a brokerage account and purchase 500 shares of mmm, Ask an Expert

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You open a brokerage account and purchase 500 shares of MMM at $150.39 by borrowing half of the required funds (you pay for 250 shares and borrow enough to buy another 250 shares). You pay 6% annual interest on the borrowed money. At the end of one year, what price would trigger a margin call if the maintenance margin were set at 35% by the brokerage firm? Show your work

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Financial Management, Finance

Category:- Financial Management
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