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2 . Given the following two investments, use a graph to illustrate the impact of leverage on an investor s gains and losses ( ignoring
Given the following two investments, use a graph to illustrate the impact of leverage on an investors gains and losses ignoring borrowing costs for simplicity aGrace invests of her savings in the shares of a hightech company. She buys the shares when they cost per share, and so owns shares. What is the value of Graces investment if the shares increase in value to per share or fall in value to per share? What is Graces percentage gain or loss? bJack has in savings but also wishes to buy shares in the same hightech company. He borrows and buys shares at per share. What is Jacks percentage gain or loss if the share price increase to or falls to per share?
Given the following two investments, use a graph to illustrate the impact of leverage on an investors gains and losses ignoring borrowing costs for simplicity
aGrace invests of her savings in the shares of a hightech company. She buys the shares when they cost per share, and so owns shares. What is the value of Graces investment if the shares increase in value to per share or fall in value to per share? What is Graces percentage gain or loss?
bJack has in savings but also wishes to buy shares in the same hightech company. He borrows and buys shares at per share. What is Jacks percentage gain or loss if the share price increase to or falls to per share?
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