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Your analysis suggest a stock has an intrinsic value of $40.25/sh. The company has a 2.25% dividend yield and a current price of $36.45. You
Your analysis suggest a stock has an intrinsic value of $40.25/sh. The company has a 2.25% dividend yield and a current price of $36.45. You can purchase it outright, or buy it on margin. Your broker will provide you with 40% margin at an annual cost of borrow of 8.5%. Estimate your total return with and without margin assuming a 1-year holding period.
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