He bought 300 shares of common stock on margin at $60 per share. The initial margin is

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He bought 300 shares of common stock on margin at $60 per share. The initial margin is 60% and the stock does not pay dividends. What would your rate of return be if you sell the stock for $45 per share? Ignore interest on margin.

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Apr 14, 2023 10:54 PM

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He bought 300 shares of common stock on margin at $60 per share. The initial margin is

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ANSWER To calculate the rate of return on the investment we need to determine the total cost of the ... View the full answer

Principles of Finance

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