Question: An investor purchased Orange Computer on margin for $ 3 3 a share. The stock's price subsequently increased to $ 5 2 a share at

An investor purchased Orange Computer on margin for $33 a share. The stock's price subsequently increased to $52 a share at which time the investor sold the stock. If the margin requirement were 60 percent and the interest rate on borrowed funds were 7 percent, what would be the percentage earned on the investor's funds (excluding commissions)? What would have been the return if the investor had not bought the stock on margin?
A blank Excel Spreadsheet is available for this question.
An investor purchased Orange Computer on margin for $33 a share.

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