USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 71

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Heidi Talbott has a margin account with a balance of $50,000. The initial margin deposit is 50 percent, and RC Industries is currently selling at $50 per share.
-Refer to Exhibit 3.2. What is Heidi's profit if RC's price rises to $80?

• A) $55,000
• B) $50,000
• C) $60,000
• D) $68,270
• E) $28,570