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Assume you just purchased 250 shares of Home Depot at $56.89 per share, and 50 percent of this was purchased on the margin. a. Determine
Assume you just purchased 250 shares of Home Depot at $56.89 per share, and 50 percent of this was purchased on the margin." a. Determine your contribution to this transaction: Total cost Amount borrowed Contribution b. What would happen to your investment if the price of Home Depot stock rose to $70.42 per share (ignoring any possible dividends)? Total value $ Loan Margin What was your profit? c. What would happen to your investment if the price of Home Depot stock fell to $38.35 per share (ignoring any possible dividends)? Total value $ Loan Margin What was your loss
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