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Claire gerver wants ti buy 1000 Chapter 11 Financial Planning Exercise 4 Calculating profits on margined and unmargined investments Claire Gerber wants to buy 1,000
Claire gerver wants ti buy 1000
Chapter 11 Financial Planning Exercise 4 Calculating profits on margined and unmargined investments Claire Gerber wants to buy 1,000 shares of Google, which is market for $545.43 a share. Rather than liquidate all her savings, she decid to borrow through her broker at 5 percent a year. Assume that the margin requirement on common stock is 50 percent. If the stock rises to $625 a share over the next year, calculate the dollar profit and percentage return that Claire would earn if she makes the investment with 50 percent margin. Contrast ese figures to what she'd make if she uses no margin. Calculate the dollar net profit. Round the answers to the nearest dollar. Without Margin with 50% Margin Calculate the return on investment. Round the answers to two decimal places. Without Margin with 50% Margin Type here to search em"3 Step by Step Solution
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