Jason Williams purchased 500 shares of a company at ($32) per share. The stock was bought on

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Jason Williams purchased 500 shares of a company at \($32\) per share. The stock was bought on 75 percent margin. One month later, Williams had to pay interest on the amount borrowed at a rate of 2 percent per month. At that time, Williams received a dividend of \($0.50\) per share. Immediately after that he sold the shares at $ 28 per share.

He paid commissions of \($10\) on the purchase and \($10\) on the sale of the stock. What was the rate of return on this investment for the one-month period?

A. 212.5 percent.

B. 215.4 percent.

C. 250.1 percent.

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Related Book For  answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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