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You purchase 100 shares of stock at a price of $37 per share using margin (MR = 60%). Assume that commissions are 1% and the
You purchase 100 shares of stock at a price of $37 per share using margin (MR = 60%). Assume that commissions are 1% and the rate on borrowed funds is 8.5%. If the stock were held for one year, what would be the interest cost to the investor in dollars? (round to the nearest whole dollar amount)
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