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2.A. The current market price for XYZ is $52 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.95% per

2.A. The current market price for XYZ is $52 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.95% per year. XYZ pays annual cash dividends of $2.35 per share.

2.B.2) Suppose you are correct and the stock falls to $63 per share at the end of the year. What is your percentage return on equity for this trade ?

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