Question
Today, you purchased 100 shares of Yahoo stock on margin at $40 per share. Assume that the initial margin is 55 percent and the stock
Today, you purchased 100 shares of Yahoo stock on margin at $40 per share. Assume that the initial margin is 55 percent and the stock pays $2 per share dividends on November 1, 2017. The broker charges an annual interest rate of 12 percent on the borrowed money.
What would your annual rate of return be if you sell the stocks for $45 per share on
December 22, 2017?
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
