Question
17) An investor puts up $9,000 but borrows an equal amount of money from his broker to double the amount invested to $18,000. The broker
17)
An investor puts up $9,000 but borrows an equal amount of money from his broker to double the amount invested to $18,000. The broker charges 7% on the loan. The stock was originally purchased at $45 per share, and in 1 year the investor sells the stock for $54. The investor's rate of return was ____.
Multiple Choice
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33.00%
-
23.50%
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16.50%
-
13.00%
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
