Question: 5 2 Using your same brokerage account as in Problem 5 1 ( same margin rate and transac - tion costs ) , assume that
Using your same brokerage account as in Problem same margin rate and transac tion costs assume that you buy IBM at $ a share, on percent margin. During the year, IBM pays a dividend of $ per share. One year later, you sell the position at $ Treat the brokerage cost to sell in calculating the gain or loss and the broker age cost to buy as part of your investment. a Calculate the dollar gain or loss on this position. b Calculate the percentage return on your investment.
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