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Estimating the return on investment

An investor purchases 500 shares of ABC stock on margin at a price of $35 per share. Assume an initial margin requirement of 45% and annual interest on margin loans of 12%. Over the next year ABC stock rises to $40. What is the return on the investment?

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Finance Basics: Estimating the return on investment

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Estimating the return on investment

Reference No:- TGS0556701

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What effect would the change in transfer price

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Estimating the return on investment

Reference No:- TGS0556701

Recent Questions Asked Finance Basics

Q : What effect would the change in transfer price

Q : What is budgeted operating income for 20x2

Q : Case study of conch republic electronics

Q : Rejecting the special order from mowen

Q : Estimating the return on investment

Q : Standard quantity price cost

Q : Prepare a bank reconciliation statement for the firm

Q : Lauer company reported net income

Q : Minsheng global expansion strategy

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