Question
Assume you just purchased 350 shares of Home Depot at $46.55 per share, and 50 percent of this was purchased on the margin.a. Determine your
Assume you just purchased 350 shares of Home Depot at $46.55 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 $54.47 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 $33.38per share (ignoring any possible dividends)?
Total value $ ______
Loan - _______
Margin _________
What was your loss?
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