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Sam is an investor and buys 300 shares of stock selling at 65 per share using a margin of 75%. The stock pays annual dividends

Sam is an investor and buys 300 shares of stock selling at 65 per share using a margin of 75%. The stock pays annual dividends of $1 per share. A margin loan can be obtained at an annual interest cost of 6%. Assume that the price of the stock increases to $74 within six months.

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