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George Bailey bought 100 shares of Debbie's Cake House on margin for $85 a share. Below are the terms George's broker gave him for the
George Bailey bought 100 shares of Debbie's Cake House on margin for $85 a share. Below are the terms George's broker gave him for the margin purchase: Commission on Purchase: $75 Margin requirement = 60% Maintenance Margin = 35% Interest rate on borrowed funds = 8% After a year, George was able to sell the stock at $120. He paid a $75 commission upon sale. Also, during the year George held the stock, Debbie's Cake House paid an annual dividend of $4.00 per share.
What was George's percentage return earned his investment.
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