PPT Slide

1 100 100 $10,000 $5000 $5000 50%

2 125 100 12,500 5000 7500 60%

+1250 - 1250

125 100 12,500 6250 6250 50%

3 90 100 9,000 6250 2750 30.56%

4 80 100 8,000 6250 1750 21.88%

Add Cash: - 650 + 650

8,000 5600 2400 30%

# Total Marginday Price shares Value Borrowings Equity ratio

equity

margin = = 30%. ==> equity = $2,400

ratio 8,000