Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Salman wants to buy maximum number of odd lot shares of Atif Habib Investment Limited. The price per share is Rs. 75. Salman Buy

Mr. Salman wants to buy maximum number of odd lot shares of Atif Habib Investment Limited. The price per share is Rs. 75. Salman Buy maximum number of Arif Habib odd lot share on margin. He paid Rs. 7200 in cash and borrowing the rest of odd lot shares from brokerage firm at an annual interest rate of 12%. He sells the shares for Rs. 90 per share after one year and repays the brokerage firm borrowed amount and interest. Atif Habib paid dividend Re.3 per share over the year.

Question: Calculate the return from buying the stock on margin.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Digital Currency Bitcoin Innovation Financial Instruments And Big Data

Authors: David Lee Kuo Chuen

1st Edition

0128021179, 978-0128021170

More Books

Students also viewed these Finance questions

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago