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Suppose you purchase 80 shares of Eagle inc. at a price of $85.68 per share using 50% margin. Your annual interest rate is 8%. After
Suppose you purchase 80 shares of Eagle inc. at a price of $85.68 per share using 50% margin. Your annual interest rate is 8%. After 4 months, Eagle inc. is now at a price of $122 per share, and has paid one dividend of $1 per share. What is your 4-month return on this margin purchase? Assume you pay 4/12 of the annual interest.
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