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Suppose that Fincorp is currently selling @ $40.00 per share. You buy 500 shares using $15,000 of your own money and borrowing the remainder of
Suppose that Fincorp is currently selling @ $40.00 per share. You buy 500 shares using $15,000 of your own money and borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. What is the percentage increase in the net worth of your brokerage account if the price of Fincorp immediately changes to $44.00? Answer in % terms to 2 decimal places but without the % sign.
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