Exhibit 4.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 17

Multiple Choice

Exhibit 4.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interest rate on margin debt is 6.25% per year. The maintenance margin is 30%.
-Refer to Exhibit 4.7.Assume that you purchase 150 shares of RossCorp stock at $45 each by making a margin deposit of 55%.At what price would you receive a margin call?

• A) $29.39
• B) $26.48
• C) $50.39
• D) $28.93
• E) $50.10

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Definitions:

Psychodynamic Approach

A psychological theory or approach that emphasizes the influence of the unconscious mind on behavior, originated by Sigmund Freud.

Psychology

Research focused on understanding the human brain and its activities, mainly as they impact behavior in certain situations.

Unconscious Mind

That part of the mind which is inaccessible to the conscious mind but that affects behaviors and emotions.

B.F. Skinner

Regarded as one of the most influential psychologists, Skinner is known for his work in behaviorism and the development of the operant conditioning theory.