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2) Assume that Caroline Chicken Corp stock is currently selling for $80 per share. Assume that you will purchase 200 shares. You have $10,000 of

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2) Assume that Caroline Chicken Corp stock is currently selling for $80 per share. Assume that you will purchase 200 shares. You have $10,000 of your own to invest and you will borrow an additional $6,000 from your broker at an interest rate of 8% per year (assume no service charge for the loan). The Maintenance Margin is 20%. If Caroline Chicken Corp's stock increases to $120 per share over the year (at the end of the year), what is your rate of return if you buy on margin? Assume that the company pays no dividends over the year. 2a) Assume that JJ Corp stock is currently selling for $120 per share. Assume that you will purchase 100 shares. You have $9,000 of your own to invest and you will borrow an additional $3,000 from your broker at an interest rate of 10% per year (assume no service charge for the loan). The Maintenance Margin is 20%. If JJ Corp's stock price falls to $80 per share over the year (at the end of the year), what is your rate of return if you buy on margin? Assume that the company pays no dividends over the year. 2b) Assume that JoeJoe Corp stock is currently selling for $50 per share. Assume that you will purchase 300 shares. You have $10,000 of your own to invest and you will borrow an additional $5,000 from your broker at an interest rate of 20% per year (assume no service charge for the loan). The Maintenance Margin is 20%. If JoeJoe Corp's stock price stays at $50 per share over the year (at the end of the year), what is your rate of return if you buy on margin? Assume that the company pays no dividends over the year

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