Question
You purchase 315 shares of 2nd Chance Co. stock on margin at a price of $63. The initial margin requirement is 75 percent. 1. Calculate
You purchase 315 shares of 2nd Chance Co. stock on margin at a price of $63. The initial margin requirement is 75 percent. 1. Calculate the initial deposit. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) 2. What would be the return if you had purchased the stock a) with margin and b) without margin under the following situations? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) (i) Assume stock price is $71 when you sell the stock. With margin % Without margin % (ii) Assume stock price is $58 when you sell the stock. With margin % Without margin %
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