Three months ago, Trevor purchased 500 shares of stock at a cost per share of $64. The
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Three months ago, Trevor purchased 500 shares of stock at a cost per share of $64. The purchase was made on margin with an initial margin requirement of 65 percent. Trevor pays 1.6 percent over the call money rate of 4.8 percent. What will be the effective annual return (EAR) on this investment if he sells his shares today at a price per share of $70? Ignore dividends.
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-1133587583
22nd edition
Authors: David P. Twomey, Marianne M. Jennings
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