The current price of Telecom RSP is $50, and you want to purchase $10,000 of its stock
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Question:
The current price of Telecom RSP is $50, and you want to purchase $10,000 of its stock on a 50% margin. The broker call loan rate is 8%.
Assuming Telecom pays no dividends, what will be your return on investment if Telecom goes up 10%?
What is the minimum price Telecom can hit before you receive a margin call?
Expert Answer:
To purchase 10000 of Telecom RSP on a 50 margin you need to put down 50 of the purchase price which ... View the full answer
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