Margin and Leverage (LO3, CFA4) Suppose the call money rate is 5.6 percent, and you pay a spread of 1.2 percent over that. you buy 1000 shares at $ 40 per share with an initial margin of 50 percent . one year later, the stock is selling for $45 per share, and you close out your position.

what is your return assuming a divident of $.64 per share is paid ?