Question
(can you show me the answer and the calculation since I need to know how it was done.) Thanks An investor buys 100 shares of
(can you show me the answer and the calculation since I need to know how it was done.) Thanks
An investor buys 100 shares of stock selling at $83 per share using a margin of 73 %. The stock pays annual dividends of $ 2.00 per share. A margin loan can be obtained at an annual interest cost of 9.4 %. Determine what return on invested capital the investor will realize if the price of the stock increases to $111 within six months. What is the annualized rate of return on this transaction?
If the price of the stock increases to $111 within six months, the six-month return on this transaction is ___%?
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