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You purchased shares of Broussard Company using 50 percent margin, you invested a total of $20,000 ( buying 1,000 shares at a price of $20
You purchased shares of Broussard Company using 50 percent margin, you invested a total of $20,000 ( buying 1,000 shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss if the stock rises to $23 a share ( ignore borrowing costs, dividends and taxes).
A. 25% B. 27% C. 10% D. 30%
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