You believe that Baobab Ltd shares are the most undervalued. The shares are currently trading at $20 per share and you decide to buy as many shares as possible by placing $10 000 into a margin account. The initial margin requirement is 50%.

A. What is the maximum number of shares you will be allowed to purchase? B. Assuming you take the position in part A. above. What will be the return on your investment if the stock price changes to $29 per share?

C. Calculate the return on your investment assuming you purchase the same number of shares as in part A, but initially place $15 000 in your margin account. D. What is the new percentage margin given the $15 000 margin requirement from part C?