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(6 Points) Assume you purchased 100 shares of Zoomer Corp's stock on margin at the beginning 430 3. of the year for $50 per share.
(6 Points) Assume you purchased 100 shares of Zoomer Corp's stock on margin at the beginning 430 3. of the year for $50 per share. You use $3,000 of your own funds and borrow $2,000 through your broker. Maintenance margin requirement is 30%. a) At what price would you receive a margin call (ignore interest)? 00o b) Annual interest cost is 5% on the margin account loan. investment if Zoomer's stock is $56.50 per share after one year? What is your rate of return on your 3000 Gso -10o 350 c) What is the margin percent in your account at the end of the year? 550 56so arain
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