Question 1. Carson Corporation stock sells for $ 17 per share, and you've decided to purchase as many shares as you possibly can. You have $ 31,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 60 percent?
Question 2. You purchased a stock at the end of the prior year at a price of $ 81. At the end of this year the stock pays a dividend of $ 1.80 and you sell the stock for $ 97. What is your return for the year? Now suppose that dividends are taxed at 15 percent and long- term capital gains ( over 11 months) are taxed at 30 percent. What is your after-tax return for the year?