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Find return if investor sells stock at the end of one year

Assume a stock is initially priced at $50, and pays an annual $1 dividend. An investor uses cash to pay $25 a share and borrows the remaining funds at a 10 percent annual interest. What is the return if the investor sells the stock for $55 at the end of one year?

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Finance Basics: Find return if investor sells stock at the end of one year

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return if investor sells stock at the end of one year

Reference No:- TGS0675295

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Relationship between abuse and addiction

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Q : Target net operating income

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return if investor sells stock at the end of one year

Reference No:- TGS0675295

Recent Questions Asked Finance Basics

Q : Relationship between abuse and addiction

Q : Journalize the enries to record the transactions

Q : What is the dollar amount of each type of candle

Q : Target net operating income

Q : Find return if investor sells stock at the end of one year

Q : How much would shulas profit increase

Q : Gathering information about specific health issues

Q : Uses a weighted-average process-costing system

Q : What is the present value of the given cash flow

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