Answered You can hire a professional tutor to get the answer.
Chuck makes a cash purchase of 100 shares of Furloughed-Worker for $55 per share. Joni also buys 100 shares of Furloughed-Worker but uses margin.
Chuck makes a cash purchase of 100 shares of Furloughed-Worker for $55 per share. Joni also buys 100 shares of Furloughed-Worker but uses margin. Each holds the stock for one year, during which time dividends of $5 per share are distributed. Commissions (which should be included in your analysis) are 2% of the value of a purchase or sale, and the margin requirement is 60%. The interest rate on borrowed funds is 10% annually. What is the percentage and dollar return earned by each investor if he or she sells the stock after one year for:
a) $40
b) $55
c) $60
d) $70
