Question
You buy stock on margin in your brokerage account when it is trading at $35.59 per share. You have $3200 in equity (cash) in
You buy stock on margin in your brokerage account when it is trading at $35.59 per share. You have $3200 in equity (cash) in your account and buy 210 shares. Your broker makes a margin loan so you can pay the difference at an annual rate of 0.0875 One year later the stock price is 37.69 What is the paper profit or loss on the trade as a percentage?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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