Question
A stock is initially priced at $40, and pays an annual $1.5 dividend. An investor uses cash to pay $20 a share and borrows the
A stock is initially priced at $40, and pays an annual $1.5 dividend. An investor uses cash to pay $20 a share and borrows the remaining funds at a 10 percent annual interest. What is the return if the investor sells the stock for $50 at the end of one year?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
