Tate Industries stock is selling for $20 a share.You would like to purchase as many shares of this stock as you can.Your margin account currently has available cash of $4,500 and the initial margin requirement is 75 percent.What is the maximum number of shares you can buy?
A) 193 shares
B) 287 shares
C) 300 shares
D) 360 shares
E) 408 shares

Question

Quizplus · Accepted Answer

Maximum purchase = $4,500 / 0.75 = $6,000
Maximum number of shares = $6000 / $20 = 300 shares, rounded down to the last full share

Tate Industries Stock Is Selling for $20 a Share