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2. Suppose you bought 100 shares of stock at $50 because you feel itll rise to $60 within 3 months. The stock pays $4 per
2. Suppose you bought 100 shares of stock at $50 because you feel itll rise to $60 within 3 months. The stock pays $4 per share in annual dividends. You are going to buy the stock with a 70% margin and will pay 8.5% interest on the margin loan. Calculate the return if the price indeed goes up to $60 in 3 months
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
