Question
Assume you just purchased 300 shares of Home Depot at $45.51 per share, and 50 percent of this was purchased on the margin. a. Determine
Assume you just purchased 300 shares of Home Depot at $45.51 per share, and 50 percent of this was purchased "on the margin."
a. Determine your contribution to this transaction: Total cost $ ______ Amount borrowed minus ______ Contribution ______
b. What would happen to your investment if the price of Home Depot stock rose to $55.61 per share (ignoring any possible dividends)? Total value $ ______ Loan minus ______ Margin ______ What was your profit?
c. What would happen to your investment if the price of Home Depot stock fell to $35.51 per share (ignoring any possible dividends)? Total value $ ______ Loan minus ______ Margin ______ What was your loss?
a. Assume you just purchased 300 shares of Home Depot at $45.51 per share, and 50 percent of this was purchased "on the margin", the amount of your contribution is $nothing . (Round to the nearest cent.)
b. If the price of Home Depot stock rose to $55.61 per share (ignoring any possible dividends), the total value of the investment would now be $nothing . (Round to the nearest cent.) The loan amount is $nothing . (Round to the nearest cent.) The amount of the margin is now $nothing . (Round to the nearest cent.) The profit is $nothing . (Round to the nearest cent.)
c. If the price of Home Depot stock fell to $35.51 per share (ignoring any possible dividends), the total value of the investment would now be $nothing . (Round to the nearest cent.) The amount of the margin is now $nothing . (Round to the nearest cent.) The loss is $nothing . (Round to the nearest cent and enter as a negative number.) Enter your answer in each of the answer boxes.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started