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Please show work, thank you! PE... An Investor buys 100 shares of stock selling at $94 per share using a margin of 70%. The stock
Please show work, thank you!
PE... An Investor buys 100 shares of stock selling at $94 per share using a margin of 70%. The stock pays annual dividends of $2.00 per share. A margin loan can be obtained at an annual Interest cost of 8.2% Determine what return on invested capital the investor will realize if the price of the stock Increases to $113 within six months. What is the annualized rate of return on this transaction? If the price of the stock increases to $113 within six months, the six-month return on this transaction is nothing% (Round to two decimal places.) The annualized rate of return on this transaction is nothing%. sh... es ul... Ic... ty Step by Step Solution
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