Currently, the price of Mattco stock is $30 a share. You have $30,000 of your own funds to invest. Using the maximum margin allowed of 50%, what is your percentage profit or loss if you purchase the stock and it rises to $33 a share

The percentage profit or loss if you purchase the stock and it rises to $33 a share is 20%

Explanation:

In order to calculate the percentage profit or loss if you purchase the stock and it rises to $33 a share we would have to make the following calculation:

percentage profit or loss=Total Gain/Amount invested

Amount invested=$30,000

According to the given data we have the following:

Share price=$30  

Amount invested=$30000  

Therefore, Number of shares purchased=  ($30,000/50% *1/30)=$2,000

Gain per share ($33-$30)=$3  

Therefore, Total Gain=$2,000*$3=$6,000  

Therefore, percentage profit or loss= $6,000/$30,000

percentage profit or loss=20%  

The percentage profit or loss if you purchase the stock and it rises to $33 a share is 20%  

answer; the correct answer to the above statement is (true);

answer; i believe the answer is 40,600,000;