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UESTON KIVE seling for keo a sthone ignomg taxes and commissions show in detail the impact on your rate of retum if the stock nses
UESTON KIVE seling for keo a sthone ignomg taxes and commissions show in detail the impact on your rate of retum if the stock nses to K 100 a share and if it dectines to KAO a share assuming (a) you pay cash for the stock, and (b) you buy R using maximum leverage 2. Lauren has a margin account and deposits K 50,000. Assuming the prevailing margin recurement is 40 percent, commissions are ignored. and The Gentry Shoe Corporation is selling at K35 per share a. How many shares of Gentry Shoe can Lauren purchase using the maximum allowable margin? b) What is Lauren's profit (loss) if the price of Gentry s stock (1) Rises to K45? (2) Falls
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