Problem:
1) You purchase 100 shares of stock at $75; the margin requirement is 25 percent. What is the percentage return if you sell the stock for $89 and bought the stock on margin? Please provide step by step solution and show all work.
2) You purchase 100 shares of stock at $75; the margin requirement is 25 percent. What is the percentage return if you sell the stock for $64 and bought the stock on margin? Please provide step by step solution and show all work.