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Sara Sanders purchased 50 shares of Apple stock at $189.95 per share using the prevailing minimum initial margin requirement of 55%. She held the stock
Sara Sanders purchased 50 shares of Apple stock at $189.95 per share using the prevailing minimum initial margin requirement of 55%. She held the stock for exactly 4 months and sold it without any brokerage costs at the end of that period. During the 4-month holding period, the stock paid $1.52 per share in cash dividends. Sara was charged 5.8% annual interest on the margin loan. The minimum maintenance margin was 25%. d. Use each of the following sale prices at the end of the 4-month holding period to calculate Sara's annualized rate of return on the Apple stock transaction: (1) $185.29, (2) $195.45, and (3) $206.22
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