Response to the following problem:
Not long ago, Dave Edwards bought 2000 shares of Almost Anything Ltd at $4.50 per share; he bought the shares using a margin loan to finance 40% of the purchase. The shares are now trading at $6 each, and the margin lender is prepared to accept a loan ratio up to 50%. Dave now wants to do a little pyramiding and buy another 3000 shares of the company.
What is the minimum amount of equity he will have to put up in this transaction?