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Investor A makes a cash purchase of 200 shares of AB&C common stock for $60 a share. Investor B also buys 200 shares of AB&C but uses margin. Each holds the stock for one year, during which dividends of $6 a share are distributed. Commissions are 3 percent of the value of a purchase or sale; the margin requirement is 60 percent, and the interest rate is 10 percent annually on borrowed funds.

What is the percentage earned by investor A if he or she sells the stock after one year for $45? Round your answer to one decimal places.

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What is the percentage earned by investor B if he or she sells the stock after one year for $45? Round your answer to one decimal places.

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What is the percentage earned by investor A if he or she sells the stock after one year for $60? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $60? Round your answer to one decimal places.

%

What is the percentage earned by investor A if he or she sells the stock after one year for $65? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $65? Round your answer to one decimal places.

%

What is the percentage earned by investor A if he or she sells the stock after one year for $75? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $75? Round your answer to one decimal places.

%

If the margin requirement had been 40 percent, what would have been the annual percentage returns?

What is the percentage earned by investor A if he or she sells the stock after one year for $45? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $45? Round your answer to one decimal places.

%

What is the percentage earned by investor A if he or she sells the stock after one year for $60? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $60? Round your answer to one decimal places.

%

What is the percentage earned by investor A if he or she sells the stock after one year for $65? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $65? Round your answer to one decimal places.

%

What is the percentage earned by investor A if he or she sells the stock after one year for $75? Round your answer to one decimal places.

%

What is the percentage earned by investor B if he or she sells the stock after one year for $75? Round your answer to one decimal places.

Please show your work. I want to learn I just cannot begin to understand how to get the answers.

Financial Management, Finance

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