Elaine plans to purchase 100 shares of Michigan International stock at $44 per share.The current margin rate is 40%.The maximum amount that Elaine could borrow from her broker is:

Question

Quizplus · Accepted Answer

First, we need to calculate the cost of 100 shares at $44 per share: 
100 x $44 = $4,400

Next, we need to calculate the amount of Elaine's own money that she needs to put down as margin: 
$4,400 x 0.40 (margin rate) = $1,760

Finally, we can calculate the maximum amount she can borrow from her broker: 
$4,400 - $1,760 = $2,640

Therefore, the answer is C.

Elaine Plans to Purchase 100 Shares of Michigan International Stock