2. Stock transactions: Margin trading Suppose Deborah wants to purchase 700 shares of Hummingcast stock at $30 per share through Kentucky Brokerage. The value of the shares is If Deborah does not have enough funding to purchase the shares herself, and Kentucky Brokerage requires an initial margin of at least 50 percent, Deborah's initial equity investment would need to be at least $ in order for Kentucky Brokerage to lend her the funds. If Deborah invests this amount, then Kentucky Brokerage would cover the remaining S If the price of Hummingcast's decreases to $20 per share, then the total value of Deborah's shares is now $ owes the brokerage firms and as a result, her equity position is now $ which represents market value of the stock. As a result, Deborah still % of the If Kentucky Brokerage requires a maintenance margin of 35 percent, then Deborah receive a margin call from Kentucky Brokerage. If Kentucky Brokerage requires a 10 percent annual interest payment on the loaned funds, the shares paid out an annual divided of $2 per share, and Deborah sold the shares at the end of the year when the price dropped to $20 per share, then what would her return on stocks purchased on margin be? -72.83 percent -68.40 percent -63.33 percent -57.00 percent If Deborah was able to fund the entirety of the stock purchase herself and sold the shares at the end of the year when the price dropped to $20 per share, then what would her return on stocks purchased be? -32.54 percent -29.34 percent 0 -26.67 percent -25.34 percent True or False: Based on your calculations, it can be concluded that purchasing stock on margin results in fewer losses if the stock price decreases. True False