Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You purchased 600 shares of common stock on margin at $40 per share and sold them 6 months later at $45. Assume the margin
You purchased 600 shares of common stock on margin at $40 per share and sold them 6 months later at $45. Assume the margin requirement is 80%, interest on margin used is 5%, and commission paid on each transaction is 2%. What is your capital gain on this investment? The capital gain on the investment is $ (Round the final answer to two decimal places. Enter the answer without symbols (ie. if the answer is $1.35 enter 1.35 in the answer box)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started