Question
Barbara buys 120 shares of DEM at $35.00 a share and 180 shares of GOP at $39.00 a share. She buys on margin and the
Barbara buys 120 shares of DEM at $35.00 a share and 180 shares of GOP at $39.00 a share. She buys on margin and the broker charges interest of 8 percent on the loan. I ONLY NEED THE ANSWERS TO C AND D PLEASE HELP ME
A. If the margin requirement is 58 percent, what is the maximum amount she can borrow? Round your answer to the nearest cent. $ 4712.4
b. If she buys the stocks using the borrowed money and holds the securities for a year, how much interest must she pay? Round your answer to the nearest cent. $ 376.99
c. If after a year she sells DEM for $30.00 a share and GOP for $29.00 a share, how much did she lose on her investment? Use a minus sign to enter the amount as a negative value. Round your answer to the nearest cent. $ ???????
d. What is the percentage loss on the funds she invested if the interest payment is included in the calculation? Use a minus sign to enter the amount as a negative value. Round your answer to two decimal places. ??????? %
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