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dsa(8pt)4. JD Trader opens a brokerage account and purchases 400 shares...

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Accounting

dsa(8pt)4. JD Trader opens a brokerage account and
purchases 400 shares of
FINCEDU at $26 per share. He borrows $3,200 from his broker to help pay for the
purchase. The interest rate on the loan is 10%.
a. What is the margin (%) in JD's account when he first purchases the stock?
b. If the share price falls to $15 per share by the end of the year, what is the
remaining margin (%) in his account? If the maintenance margin requirement is
45%, will he receive a margin call? (Show your calculation)
c. If JD decides to sell 100 shares to pay down the debt, what is the new margin
(%)?
d. What is the rate of return on his investment?

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