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Assume that an investor buys 100 shares of stock at 35 per

Question: Assume that an investor buys 100 shares of stock at $35 per share, putting up a 75% margin.

a. What is the debit balance in this transaction?

b. How much equity funds must the investor provide to make this margin transaction?

c. If the stock rises to $55 per share, what is the investor's new margin position?

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Accounting Basics: Assume that an investor buys 100 shares of stock at 35 per

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Accounting Basics: Assume that an investor buys 100 shares of stock at 35 per

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