Question: please do both problems ! thanks! 14 15 Problem 1 A stock sells for $10 per share. You purchase 100 shares for $10 a share

please do both problems ! thanks!

14 15 Problem 1 A stock sells for $10 per share. You purchase 100 shares for $10 a share for 1 thousand, and after the price rises to 17.50, what will be the percentage return on your investment of you bough the stock on margin and the margin requirement was (a) 25% 16 (b) 50% (c) 75% 17 18 19 20 21 22 23 Problem 4 Investor A buys 100 shares of SLM inc. atat $35 a share and holds the stock for year. Investor B buys 100 shares on margin. The margin requirement is 60% and the interest rate on borrowed funds in 8% (A) What is the Interest for Investor A? (B) What is the interst cosr investor B? (C) If they both sell for $40 after a year, what percentage return does each investor earn? (D) In both cases, the value of the stock has risen the same. Why are the 24 percentage return different? 25 Sheet1 Problem 6

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