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Hi all I need your help guys to solve this question Suppose that you open a brokerage account and purchase 300 shares of Internet Dreams
Hi all
I need your help guys to solve this question
Suppose that you open a brokerage account and purchase 300 shares of Internet Dreams at $40/share You borrow $4 000 from your broker to help pay for the purchase. The interest rate on the loan s 8% a. What is the margin ($) in your account when you first purchased the stock? b. If Share price fails to $30/Share by me end of the year, what is the remaining margin (%) in your account? If the maintenance margin requirement is 30% will you receive a margin call? C. What is the rate of return on your investmentStep by Step Solution
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