An investor buys 1000 shares of a stock on margin at a


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 investor’s broker charge a commission of $ 0.01 per share on purchase and sales. 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 investor’s rate of return is closet to?

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Financial Management: An investor buys 1000 shares of a stock on margin at a
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