Yvette Recently Purchased 700 Shares of Stock at a Cost

question 73

Multiple Choice

Yvette recently purchased 700 shares of stock at a cost per share of $43.50. The initial margin requirement on this stock is 75 percent and the maintenance margin is 40 percent. The stock is currently valued at $45.10 a share. What is her current margin position? Ignore margin interest.

• A) 74.29 percent
• B) 74.78 percent
• C) 75.89 percent
• D) 76.03 percent
• E) 76.14 percent

---

Definitions:

Office Equipment Depreciation

The process of allocating the cost of office equipment over its useful life, recognizing it as an expense on financial statements.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services.

Indirect Costs

Expenses that are not directly tied to the production of goods or services, such as overhead, administration, and salaries.

Salespersons' Salaries

Fixed or variable payments made to sales staff as compensation for their services, typically involving a base salary and possibly commissions.