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Chapter_3_Buying_on_Margin_New

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Buying on Margin Action or Formula Ending Return on Ending Return with for Column B St Price Investment St Price No Margin Initial Equity Investment $10,000.00 Enter data -42.00% -19.00% Amount Borrowed $10,000.00 (B4/B10)-B4 $20.00 -122.00% $20.00 -59.00% Initial Stock Price $50.00 Enter data 25.00 -102.00% 25.00 -49.00% Shares Purchased 400 (B4/B10)/B6 30.00 -82.00% 30.00 -39.00% Ending Stock Price $40.00 Enter data 35.00 -62.00% 35.00 -29.00% Cash Dividends During Hold Per. $0.50 Enter data 40.00 -42.00% 40.00 -19.00% Initial Margin Percentage 50.00% Enter data 45.00 -22.00% 45.00 -9.00% Maintenance Margin Percentage 30.00% Enter data 50.00 -2.00% 50.00 1.00% 55.00 18.00% 55.00 11.00% Rate on Margin Loan 8.00% Enter data 60.00 38.00% 60.00 21.00% Holding Period in Months 6 Enter data 65.00 58.00% 65.00 31.00% 70.00 78.00% 70.00 41.00% Return on Investment 75.00 98.00% 75.00 51.00% Capital Gain on Stock -$4,000.00 B7*(B8-B6) 80.00 118.00% 80.00 61.00% Dividends $200.00 B7*B9 Interest on Margin Loan $400.00 B5*(B14/12)*B13 Net Income -$4,200.00 B17+B18-B19 LEGEND: Initial Investment $10,000.00 B4 Enter data
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