You purchase 150 shares for $30 a share ($4,500), and after a year the price falls to $25. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): a. 25 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % b. 30 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % c. 75 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. %

You purchase 150 shares for $30 a share ($4,500), and after a year the price falls to $25. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): a. 25 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % b. 30 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % c. 75 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 8P

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