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.
A. 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.
%
B. 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.
%
C. 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.
%
D. 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.
%
Now the question changes
If the margin requirement had been 40 percent, what would have been the annual percentage returns?
A. 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.
%
B. cWhat 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.
%
C. 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.
15% (I got this one right I am not sure how)
D. 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 this. Honestly if you just show me how to do the first few of both sections (part 1 &2) it would be greatly appreciated and help me learn this for my test later in the semester.