An investor buys 200 shares of stock selling at $63 per share using a margin...
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Finance
An investor buys 200 shares of stock selling at $63 per share using a margin of 55%. The stock pays annual dividends of $3.00 per share. A margin loan can be obtained at an annual interest cost of 4.7%. Determine what return on invested capital the investor will realize if the price of the stock increases to $85 within six months. What is the annualized rate of return on this transaction?
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