You have 30000 in a margin account 60 initial margin


You have $30,000 in a margin account, 60% initial margin required. Suppose you buy 1,000 shares of IBM, for $50/share. Assume no dividends, and that your borrowing rate is 6.4%. What is your percentage rate of return if, in one year, IBM stock is selling for $36 per share?

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Financial Management: You have 30000 in a margin account 60 initial margin
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