1. You have $500 to invest. You decide to open a margin account with your brokerage. The account has an 80% initial margin requirement. You have decided to invest in Firewood Inc. stock when the price is $5 per share.
When the price rises to $6 per share, what will the equity on your account be?
2. You have $500 to invest. You decide to open a margin account with your brokerage. The account has an 80% initial margin requirement. You have decided to invest in Firewood Inc. stock when the price is $5 per share.
When the price rises to $6 per share, what will the margin on your account be? (Enter as a percentage, round to two decimal places, do not enter a percent symbol.)
3. You have $500 to invest. You decide to open a margin account with your brokerage. The account has an 80% initial margin requirement. You have decided to invest in Firewood Inc. stock when the price is $5 per share.
When the price rises to $6 per share you decide to sell., What was your rate of return on this investment? (Enter as a percentage, no percent symbol)