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Ulleksa [173]
3 years ago
9

You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a pri

ce of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss if the stock price rises to $23 a share
Business
1 answer:
IceJOKER [234]3 years ago
3 0

Answer:

My percentage profit is 15%

Explanation:

Total investment = $20 × 1000 = $20,000

Rise in value of investment = $23 × 1000 = $23,000

Profit = $23,000 - $20,000 = $3,000

Percentage profit = profit/total investment × 100 = $3,000/$20,000 × 100 = 15%

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