Stock is currently selling for $48 a share. You believe that the price of the stockwill increase to $60 by the end of four years. You also estimated the followingannual dividends of $2.00, $2.10, $2.20 and $2.30. If you feel that you shouldearn at least 12% on this investment, should you buy it?

6.Builtrite stock is currently selling for $20 a share. You purchase 200 shares and later the stock is selling for $30 a share

.a) Without using margin, what is your ROI?

b) Using 60% margin, what is your ROI?

c) What stock price would trigger a margin call?

d) You decide to try pyramiding, with 60% margin, how much new stock could you purchase with no additional money down?