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Calculate the holding period return on equity if you bought a stock for $100 per share. You put up 50% equity and borrowed 50% at
Calculate the holding period return on equity if you bought a stock for $100 per share. You put up 50% equity and borrowed 50% at 10% per year to buy the stock. After one year the stock is selling for $98 and paid a $5 dividend at the end of the year. The interest on borrowed funds is 10%.
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