USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 20

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. If the maintenance margin is 25 percent, to what price can RC Industries stock price fall before Heidi receives a margin call?

• A) $21.75
• B) $23.33
• C) $32.00
• D) $33.33
• E) $22.22

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Definitions:

Southern Slavery

The institution of forced labor and servitude that existed in the Southern United States until the end of the Civil War in 1865, where African Americans were held as slaves.

Historian

A professional or expert in history who studies and writes about the past, analyzing historical documents and sources.

Evidence

Information, facts, or data presented in support of an assertion, argument, or as proof in legal proceedings.

Dorr War

A short-lived armed insurrection in Rhode Island during 1842, sparked by demands for broader voting rights and political reforms.