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:

Nasal Conchae

These are long, narrow, curled shelves of bone that protrude into the nasal cavity, increasing its surface area.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, at the top of the larynx, which prevents food from entering the airways during swallowing.

Uvula

A small, fleshy extension at the back of the soft palate that hangs above the throat, playing roles in speech and preventing food from entering the nasal cavity.