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Assume you just purchased 350 shares of Home Depot at $40.87 per share, and 50 percent of this was purchased on the margin. a. Determine
Assume you just purchased 350 shares of Home Depot at $40.87 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 $54.24 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 $34.47 per share (ignoring any possible dividends)? Total value $ I--- a. Assure you just purchased 350 shares of Home Depot at $40.87 per share, and 50 percent of this was purchased on the margini", the amount of your contribution is $. (Round to the nearest cent.) b. If the price of Home Depot stock rose to $54.24 per share (ignoring any possible dividends), the total value of the investment would now be $7 (Round to the nearest cent.) The loan amount is $. (Round to the nearest cont.) The amount of the margin is now $ . (Round to the nearest cent.) The profit is $. (Round to the nearest cent.) c. If the price of Home Depot stock fell to $34.47 per share (Ignoring any possible dividends), the total value of the investment would now be S. (Round to the nearest cent.) The amount of the margin is now . (Round to the nearest cent.) The loss is $. (Round to the nearest cent and enter as a negative number.)
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