Bill Campbell invested $4,000 and borrowed $4,000 to purchase shares in Kellogg. At the time of his

Question:

Bill Campbell invested $4,000 and borrowed $4,000 to purchase shares in Kellogg. At the time of his investment, Kellogg stock was selling for $58 a share. Note: There were no commissions to buy or sell this stock.

1. How many shares could he buy if he used his $4,000 and borrowed $4,000 on margin to buy Kellogg stock?

2. Assuming Bill did use margin, sold his Kellogg stock for $65 a share, how much profit did he make on his Kellogg investment?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Personal Finance

ISBN: 9781264101597

14th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

Question Posted: