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You purchased 200 shares of ABC company at $50 each with an initial margin of 50%. The broker will charge 10% interest on the money
You purchased 200 shares of ABC company at $50 each with an initial margin of 50%. The broker will charge 10% interest on the money you borrowed. Now suppose the price of ABC company rises by 10% next year. What will be the rate of return on your investment? Assume stock does not pay dividend. (You must show all necessary workings)
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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
