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Vilka [71]
3 years ago
12

You purchase 150 shares for $70 a share ($10,500), and after a year the price rises to $80. Calculate the percentage return on y

our investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):
Business
1 answer:
Lyrx [107]3 years ago
6 0

Answer:

57.14%

Explanation:

Missing word <em>"25 percent."</em>

<em />

Gain on the stock = (150*$80) - $10,500

Gain on the stock = $ 12,000 - $10,500

Gain on the stock = $1,500

If Margin requirement is 25%, The Margin = 10,500*25% = $2,625

Return on Investment = $1,500/$2,625 * 100 = 0.571429 * 100 = 57.1429% = 57.14%

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