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Mr. George who bought today 500 shares of Toys R shares paying $ 100 per share decides to buy more shares of Toys R by
Mr. George who bought today 500 shares of Toys R shares paying $ 100 per share decides to buy more shares of Toys R by borrowing money from the brokerage house
A) How many additional shares Mr. George may buy?
B) Suppose that Toys R is up to $ 140 after 6 months. What will be the net profit of Mr. George in case of not borrowing and in case of borrowing?
Note: The annual interest rate is 10%
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