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You purchase 1,000 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $25,000. a.
You purchase 1,000 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $25,000. a. Suppose you sell the stock at a price of $50. What is your return? What would your return have been had you purchased the stock without margin? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) With margin Without margin Rate of Return With margin Without margin b. What is your return if the stock price is $44 when you sell the stock? What would your return have been had you purchased the stock without margin? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) % % Rate of Return
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a If you sell the stock at a price of 50 your return with margin can be calculated as follows Net Pr...Get Instant Access to Expert-Tailored Solutions
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