Assume you invested $570 in one stock and borrowed 50% to finance the purchase. You later sell the stock for $720. The stock also paid you a dividend of $2. Consider no transaction costs on the purchase or sale of the stock. Determine the leverage ratio, the net dollar profit and the equity return on this transaction.

Answer rating: 100% (QA)

To calculate the leverage ratio net dollar profit and equity return on ... View the full answer