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Sam is bullish on MSFT's stock and wants to purchase 500 shares that are traded currently at $350 per share. To finance his investment, Sam
Sam is bullish on MSFT's stock and wants to purchase 500 shares that are traded currently at $350 per share. To finance his investment, Sam borrowed funds from his broker at 10% and an initial margin of 50%. The broker required maintenance margin 40%. What will be Sam's rate of return if the MSFT's stock price goes up by 30% during the coming year? and What is the future minimum price that MSFT's stock could reach before receiving a margin call?
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