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Currently, the price of Mattco stock is $30 a share. You have $30,000 of your own funds to invest. Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share

User Jeremib
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Answer:

The percentage profit or loss if you purchase the stock and it rises to $33 a share is 20%

Step-by-step explanation:

In order to calculate the percentage profit or loss if you purchase the stock and it rises to $33 a share we would have to make the following calculation:

percentage profit or loss=Total Gain/Amount invested

Amount invested=$30,000

According to the given data we have the following:

Share price=$30

Amount invested=$30000

Therefore, Number of shares purchased= ($30,000/50% *1/30)=$2,000

Gain per share ($33-$30)=$3

Therefore, Total Gain=$2,000*$3=$6,000

Therefore, percentage profit or loss= $6,000/$30,000

percentage profit or loss=20%

The percentage profit or loss if you purchase the stock and it rises to $33 a share is 20%

User Rafay Zia Mir
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