If Rob has K40 000 in his margin account and he wants to use the money to buy shares of the ABC?

... company. The initial margin requirement is 40% and ABC’s stock price is currently K50. Ignore taxes, commissions and interest on the amount

... company. The initial margin requirement is 40% and ABC’s stock price is currently K50. Ignore taxes, commissions and interest on the amount borrowed.
A.How many share of ABC can Rob buy from his margin account?
[4 MARKS]
B.What is Rob’s percentage return if he buys the stock on margin and the price increases to K55?[4 MARKS]

C.If the maintenance margin is 30%, at what price would Rob receive a margin call from his broker?[7 MARKS

or:... company. The initial margin requirement is 40% and ABC\u2019s stock price is currently K50. Ignore taxes, commissions and interest on the amount borrowed.A.\tHow many share of ABC can Rob buy from his margin account?[4 MARKS]\tB.\tWhat is Rob\u2019s percentage return if he buys the stock on margin and the price increases to K55?\t\t\t\t\t\t\t[4 MARKS]\t\t\t\t\t\tC.\tIf the maintenance margin is 30%, at what price would Rob receive a margin call from his broker?\t\t\t\t\t\t[7 MARKS

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