Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you buy 100 shares of XYZ Industrial stock @$20 per share on 50% initial margin. The broker charges a 10% annual interest rate, and
Suppose you buy 100 shares of XYZ Industrial stock @\$20 per share on 50% initial margin. The broker charges a 10% annual interest rate, and the commissions are 3\% of the stock value on the purchase and sale. A year later you received $0.4 per share dividend and sell the stock for $28 a share. What is your return on investment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started