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You are bullish on Zhu Que, Incorporated. You invest $10,000 of your own money and borrow $10,000 more from your broker (at) 8 percent

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You are bullish on Zhu Que, Incorporated. You invest $10,000 of your own money and borrow $10,000 more from your broker (at) 8 percent interest). You invest all of that in Zhu Que, Incorporated stock, buying for $125 per share. One year later, the price is now $95. 2 3 A Zhu Que, Incorporated 5 Current Market Price (per share) 6 Market Price in One Year $125.00 $95.00 7 8 9 Interest Rate 10 Maintenance Margin Broker 0.08 0.35 11 12 Investor 13 Money to Invest 14 Money to Borrow $10,000 $10,000 15 16 Required: Using the tables above, solve the following: How many shares can the investor purchase given the invested equity and borrowed 17 money? What is the one year rate of return? Will the investor receive a margin call (Output should be Yes or No) 18

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