Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the initial margin requirement on a stock purchase

The initial margin requirement on a stock purchase is 50%. You fully use the margin...

50.1K

Verified Solution

Question

Finance

The initial margin requirement on a stock purchase is 50%. You fully use the margin allowed to purchase 100 shares of a stock at $230 per share. An interest rate of 5% per year is charged on the borrowed funds. If the price drops to $215 over a one-year holding period and you received a dividend of $2.24 per share during that time period, what is your rate of return

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Basic Math
1.2K views

PROBLEM: The average hourly wage of carpenters is normally distributed with a population mean of $62.00 and...

Statistics
1.2K views

Question 4 The list of all means you would compute from all possible samples you could draw...

Psychology
1.2K views

Write an Argument Essay. Prompt: Choose ONE of the following topics for your essay: 1. Should parents...

Advance Math
1.2K views

Give Examples (this is complex analysis): (a.) First characterize open and closed sets in terms of...

Biology
1.2K views

A driver who has been drinking is more likely to Yield right of way to...

Biology
1.2K views

16 Plant requirements explain how the parts of a plant differ and how they are...

Calculus
1.2K views

23 What is the period of the graph of y csc x A 2 B...

Calculus
1.2K views

12 0 13 Points DETAILS SCALCET9 3 1 064 O At what exact point on...

Accounting
1.2K views

Whispering Construction Company changed from the completed-contract to the percentage-of-completion method of accounting...

Accounting
1.2K views

Innovative Tech Inc. (ITI)...

Accounting
1.2K views

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...

Accounting
1.2K views

Kindly please help me. thanks in advance :) Futura Company purchases the 77,000 starters...