An investor buys 16000 worth of a stock priced at 20 per, Financial Management

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An investor buys 16000 worth of a stock priced at 20 per

An investor buys $16,000 worth of a stock priced at $20 per share using 55% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $0.50 per share dividend in one year and then the stock is sold at $23 per share. What was the investor's rate of return?

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Financial Management: An investor buys 16000 worth of a stock priced at 20 per

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Financial Management: An investor buys 16000 worth of a stock priced at 20 per

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