What is the debit balance if the stock price goes down by


You buy 100 shares at $20/share on 70% margin.

a. What is the debit balance?

b. What is the investor’s equity?

c. If the stock price goes up by 50%, what is the return on investor’s equity?

d. If the stock price goes down by 30%, what is the return on investor’s equity?

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Financial Management: What is the debit balance if the stock price goes down by
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