Question
You purchased 300 shares of common stock on margin for $50 per share. The initial margin is 60% and the stock pays no dividend. Your
| You purchased 300 shares of common stock on margin for $50 per share. The initial margin is 60% and the stock pays no dividend. Your rate of return would be __________ if you sell the stock at $40 per share. Ignore interest on margin. |
| ||
|
| A) | 33% | |
|
| B) | -33% | |
|
| C) | -44% | |
|
| D) | -56% | |
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Financial Modeling
Authors: Simon Benninga, Tal Mofkadi
5th Edition
0262046423, 9780253337825
