- An investor purchased 5000 shares of a company listed on the GSE at GH 15...

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- An investor purchased 5000 shares of a company listed on the GSE at GH 15 per share. Of the total value of investment, the investor borrowed GH 30,000 from the broker at broker loan rate of 20% per annum. Immediately after the investment, the stock price started falling. After one year, the stock price had fallen to GH 10 per share. With the investor sensing danger that the falling trend might continue, he sold the investment at this price. Taking into consideration round trip transaction cost at 2.5% each way as well as call loan charges, calculate, i. the investor's return on his equity in percentage terms? ii. the investor's return on his investment in percentage terms? - An investor purchased 5000 shares of a company listed on the GSE at GH 15 per share. Of the total value of investment, the investor borrowed GH 30,000 from the broker at broker loan rate of 20% per annum. Immediately after the investment, the stock price started falling. After one year, the stock price had fallen to GH 10 per share. With the investor sensing danger that the falling trend might continue, he sold the investment at this price. Taking into consideration round trip transaction cost at 2.5% each way as well as call loan charges, calculate, i. the investor's return on his equity in percentage terms? ii. the investor's return on his investment in percentage terms?

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Details Working Shares Price Equity Loan Investment Equity Loan Purchases Shares X Pu... View the full answer