You buy $10,000 worth of IBM stock at $50/share at a 50% margin rate. You...
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Accounting
You buy $10,000 worth of IBM stock at $50/share at a 50% margin rate. You are charged 8% interest per year in your margin account. At the end of one year, the price of IBM is $55/share. Ignoring any dividends that the stock may have issued, the total return to your margined position at the end of the year, after netting out margin costs is_________ percent.
- 10 percent
- 20 percent
- 12 percent
- 8 percent
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