Calculate profit and the return on investment

Reference no: EM1362164

Lauren has a margin account and deposits of $50,000. Assuming the initial margin requirements is 40%, and The Gentry shoe corporation is selling at $25.00 per share:
How many shares can Lauren purchase using the maximum allowable Margin?

What are Lauren's profit (loss) and the return on investment if the price of Gentry's stock rises to $45 per share and at $20.00 per share?

If the maintenance margin is 30%, to what price can Gentry Shoe fall before Lauren will receive a margin call?

Reference no: EM1362164

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