43. An investor opens a margin account with an initial deposit of $5,000. He then purchases 200 shares of PRK stock at $46 in his margin account, which has a margin maintenance requirement of 25 percent. Ignoring commissions and interest, the minimum price that PRK stock can fall to before the investor receives a margin call is closest to:

Select exactly 1 answers from the following:
A. $16.80. B. $20.00. C. $28.00. D. $33.33.
答案和详解如下！
Feedback: Correct answer: C

Investment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (South-Western, 2003), pp. 127-130

2006 Modular Level I, Vol. III, pp. 251-255

Study Session 12-52-f

describe the process of buying a stock on margin, compute the rate of return on a margin transaction, define maintenance margin and determine the stock price at which the investor would receive a margin call

Determine the price (P) that is equal to 25 percent:

(200P - 4200) / 200P =.25

P = $28.00

Correct answer: C