# You purchased shares of Broussard Company using 50 percent margin; you invested

Anonymous
timer Asked: Sep 7th, 2016

Question description

You purchased shares of Broussard Company using 50 percent margin; you invested a total of \$20,000 (buying 1,000 shares of a price of \$20 per share) by using \$10,000 of your own funds and borrowing \$10,000. Determine your percentage profit or loss under the following situations (ignore borrowing costs, dividends, and taxes):

A.   the stock price rises to \$23 a share

B.   the stock price rises to \$30 a share

C.   the stock price falls to \$16 a share

D.   the stock price falls to \$10 a share

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