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A stock sells for $25 per share You purchase 150 shares for $25 a s

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A stock sells for $25 per share. You purchase 150 shares
for $25 a share (i.e., for $3,750), and after a year the price
falls to $22.50. a What will be the percentage return on
your investment if you bought the stock on margin and the
margin requirement was 25 percent? Round your answer to
one decimal places. b. What will be the percentage return
on your investment if you bought the stock on margin and
the margin requirement was 50 percent? Round your
answer to one decimal places. c.What will be the
percentage return on your investment if you bought the
stock on margin and the margin requirement was 75
percent? Round your answer to one decimal places.
Solution
Answer=
a=-40%
b=-20%
c=-13.3%Total loss on share( Last share price-purchase
price)* no of shares-375.025% margin937.550%
margin1875.075% margin2812.5% return on 25%
margin(375/937.5)-40.0%% return on 50%
margin(375/1875)-20.0%% return on 75%
margin(375/937.5)-13.3%

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A stock sells for $25 per share. You purchase 150 shares for $25 a share (i.e., for $3,750), and after a year the price falls to $22.50. a What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 25 percent? Round your answer to one decimal places. b. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 50 percent? Round your answer to one decimal places. c.What will be the percentage return on your investment if you bought the stock on margin and the margin requireme ...
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