*Please show work and explain* An investor bought on margin 100 shares of Copier Corp....
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*Please show work and explain*
An investor bought on margin 100 shares of Copier Corp. for $90 a share. The firm paid an annual dividend of $4 a share; the margin requirement was 60 percent with an interest rate of 8 percent on borrowed funds, and commissions on the purchase were $15 and on the sale were another $15. The price of the stock rose to $120 in one year.
a. What is the percentage return earned on the investment if the stock is bought for cash (i.e., the investor did not use margin)?
b. What is the percentage return earned on the investment if the stock is bought on margin?
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