Question

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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  • CreatedMarch 27, 2015
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