Bob has purchased 100 Delta shares on margin at a price of $30 per share, and has a leverage ratio of 2.0. Borrowing costs are 10% per annum. Delta does not pay dividends. Ignoring transaction costs, what is Bob's profit if he sells the 100 shares for $50 per share after 12 months?.

Answer rating: 100% (QA)

Number of shares100 Price per share30 Total value of share Price per share x number of s... View the full answer