Question
a. 425 b. 1650 c. 2000 d. 825 Assume that MM's perfect capital markets conditions are met and that you can borrow and lend at
| a. |
425
| |
| b. |
1650
| |
| c. |
2000
| |
| d. |
825
|
Assume that MM's perfect capital markets conditions are met and that you can borrow and lend at the same 5% rate as W. You have $5000 of your own money to invest and you plan on buying WO stock. Using homemade leverage you borrow enough in your margin account so that the payoff of your margined purchase of WO stock will be the same as a $5000 investment in W stock. The number of shares of WO stock you purchased is closest to:
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New Issues In Financial Institutions Management
Authors: F Fiordelisi, P Molyneux, D Previati
2010th Edition
0230278108, 978-0230278103
