Investor A buys 100 shares of SLM Inc. at $35 a share and holds the stock for
Question:
a. What is the interest cost for investor A?
b. What is the interest cost for investor B?
c. If they both sell the stock for $40 after a year, what percentage return does each investor earn?
d. In both cases, the value of the stock has raised the same. Why are the percentage returns different?
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