Question
The current market price for XYZ is $55 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year.XYZ
The current market price for XYZ is $55 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year.XYZ pays annual cash dividends of $2.15 per share.You believe the stock price will increase over the next year and wish to trade long using margin.Suppose you are correct and the stock rises to $65 per share at the end of the year. What is your percentage return on assets for this trade?Enter your answer rounded to two decimal places.Do not enter % in the answer box.For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
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