Question
Marlene Bellamy purchased 300 shares of Writeline Communications stock at $ 56.04 per share using the prevailing minimum initial margin requirement of 52 % She
Marlene Bellamy purchased 300 shares of Writeline Communications stock at $ 56.04 per share using the prevailing minimum initial margin requirement of 52 % She held the stock for exactly 7 months and sold it without any brokerage costs at the end of that period. During the 7 -month holding period, the stock paid $ 1.66 per share in cash dividends. Marlene was charged 7.9 % annual interest on the margin loan. The minimum maintenance margin was 25 %. If the sale price at the end of the 7-month holding period is $50.44, then Marlene's annualized rate of return is_____?
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