Question
Eiyan purchases 200 shares of Pfizer on margin for $45 per share. She sells her shares after one year for $52 per share. The following
Eiyan purchases 200 shares of Pfizer on margin for $45 per share. She sells her shares after one year for $52 per share. The following information is also available:
Dividend received on the stock = $1 per share
Commission paid = $0.25 per share
Leverage ratio = 2.5
Call money rate = 5%
Government bill rate = 6%
The total return on Emanuels investment is closest to?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
17th Edition
126001391X, 978-1260013917
