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You ve just opened a margin account with $ 2 5 , 2 0 0 at your local brokerage firm. You instruct your broker to
Youve just opened a margin account with $ at your local brokerage firm. You instruct your broker to purchase shares of Landon Golf stock, which currently sells for $ per share. Suppose the call money rate is percent and your broker charges you a spread of percent over this rate. You hold the stock for six months or days and sell at a price of $ per share. The company paid a dividend of $ per share the day before you sold your stock. What is the total dollar return on this investment!!
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