An investor purchases 400 shares of Company A at $55 per share.Suppose that the investor...

An investor purchases 400 shares of Company A at $55 per share. Suppose that the investor finances $8,500 of their investment with a margin loan at 7% interest. If the price of one share of Company A falls to $50 in a year, what is the investor’s rate of return?(Do not round intermediate calculations.Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.)

An investor purchases 400 shares of Company A at $55 per share. Suppose that the investor finances $8,500 of their investment with a margin loan at 7% interest. At what price will the investor receive a margin call if the brokerage firm requires a maintenance margin of 30%? (Do not round intermediate calculations. Negative values should be indicated by a minus sign. Round your answer to 2 decimal places.)

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jeff jeffy answered 1 year ago

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