Question
With commissions....What is your return if you buy shares now on margin and sell them one year later? Share purchased 1,000 Purchase price per share
With commissions....What is your return if you buy shares now on margin and sell them one year later?
Share purchased 1,000 Purchase price per share 100 Annual dividend per share $2 Initial Margin requirement 40%
Call money rate (interest rate) 4%
Commission per share $0.05
Stock price after one year $110
Answer: 23.72%
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The Handbook Of Loan Syndications And Trading
Authors: Marsh, Lee Shaiman, Bridget Marsh
2nd Edition
1264258526, 978-1264258529
