Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500. 1. Suppose

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500.

1.

Suppose you sell the stock at a price of $52. What is your return? What would your return have been had you purchased the stock without margin? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

With margin %
Without margin %

2.

What is your return if the stock price is $44 when you sell the stock? (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.)

With margin %
Without margin %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Property Finance

Authors: Giacomo Morri, Antonio Mazza

1st Edition

1118764404, 978-1118764404

More Books

Students also viewed these Finance questions