HDR hardman resources limited

margin lending, page-2

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    Your margin call = Loan Amount divided by (Total Shares x Max lvr)

    Loan Amount = 25,000 x 2.05 = $51,250
    Be conservative and add a little for interest (say 8% over one full year) = $4,100
    Therefore the Loan Amount is closer to $55,350

    Total Shares = 25,000 + 75,000

    Max lvr (lend value ratio) varies depending on who you're with - not sure with ANZ - it could be 50%, 60% or most likely 70%.

    Therefore, for 70% lvr your call = $55,350 / (100,000 x 0.7) = $0.79

    For 60% lvr it would be $0.92 and for 50% it would be $1.11.

    Don't think you've got any problems riding this out!

    Cheers,
    Butcherano.
 
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