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You buy 200 shares of stock selling at $80/share using margin of 60%, and the stock pays an annual dividend of $1/share. The annual cost
You buy 200 shares of stock selling at $80/share using margin of 60%, and the stock pays an annual dividend of $1/share. The annual cost of the margin loan is 8%.
Determine the return on investment you would realize if the price of the stock increased to $104 within 6 months.
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