An investor buys 1,000 shares of a stock on margin at a price of $...
70.2K
Verified Solution
Link Copied!
Question
Finance
An investor buys 1,000 shares of a stock on margin at a price of $ 50 per share. The initial margin requirement is 40% and the margin lending rate is 3 %. The stock pays an annual dividend of $ 0.30 per share. Once year later, the investor sells the $ 1,000 shares at a price of $56 per share. The investors rate of return is closet to?
A) 23%
B) 25%
C) 27%
D) 21%
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.