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You purchased 100 shares of common stock on margin for $35 per share. The initial margin is 60%, and the stock pays no dividend. What
You purchased 100 shares of common stock on margin for $35 per share. | ||||||
The initial margin is 60%, and the stock pays no dividend. | ||||||
What would your rate of return be if you sell the stock at $42 per share? | ||||||
Ignore interest on margin.
| ||||||
a. | 35.33% | |||||
b. | 40.44% | |||||
c. | 28.33% | |||||
d. | 33.33% |
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