Carson Corporation stock sells for $32 per share, and you\'ve decided to purchas

Question

Carson Corporation stock sells for $32 per share, and you've decided to purchase as many shares as you possibly can. You have $56,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 60 percent? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Carson Corporation stock sells for $32 per share, and you've decided to purchase as many shares as you possibly can. You have $56,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 60 percent? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Explanation / Answer

Maxium No. of shares = $56,000 / (60% * $32)

= 2,916.67 ~ 2,916 shares

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