Question: 5 2 Using your same brokerage account as in Problem 5 1 ( same margin rate and transac - tion costs ) , assume that

52 Using your same brokerage account as in Problem 51(same margin rate and transac- tion costs), assume that you buy IBM at $156 a share, on 60 percent margin. During the year, IBM pays a dividend of $1.30 per share. One year later, you sell the position at $233. 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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