How much does the investor have to deposit, Financial Management

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How much does the investor have to deposit

Problem

An investor buys $56,000 worth of a stock priced at $70 per share using 60% initial margin. The broker charges 4% on the margin loan and requires a 35% maintenance margin. The stock pays a $0.35 per share dividend in 1 year, and then the stock is sold at $73.5 per share. How much does the investor have to deposit when they get a margin call?

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Financial Management: How much does the investor have to deposit

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Financial Management: How much does the investor have to deposit

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