Question
You purchased 100 shares of common stock on margin at $50 per share. Assume the initial margin is 50%, and the maintenance margin is 30%.
You purchased 100 shares of common stock on margin at $50 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Assume the stock pays no dividend; ignore interest on margin. What would your rate of return be if you sell the stock at $56 per share?
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Middle Market M And A Handbook For Advisors Investors And Business Owners
Authors: Kenneth H. Marks, Christian W. Blees, Michael R. Nall, Thomas A. Stewart
2nd Edition
1119828104, 978-1119828105
