Calculate the margin call price


Problem

You use a broker to increase your investment capital by £6,000 to £15,000. This funds your investment into Pink Ltd, the current share price is 200p which you expect to rise to 220p in three months' time. The broker charges 10% per annum on borrowings and has set a maintenance margin of 0.40. Calculate the margin call price.

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Financial Accounting: Calculate the margin call price
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