1.

A. You purchase 900 shares of 2nd Chance Co. stock on margin at a price of $40. Your broker requires you to deposit $18,600. What is the initial margin requirement?

B. In the previous problem, what would your return have been had you purchased the stock without margin? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) The text of the previous problem is copied here for your convenience: You purchase 550 shares of 2nd Chance Co. stock on margin at a price of $55. Your broker requires you to deposit $15,500. Suppose you sell the stock at a price of $62.

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