Borrowing costs-dividends and taxes.

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You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss if the stock price rises to $23 a share (ignore borrowing costs, dividends, and taxes).

Reference no: EM132517709

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