You bought 250 shares of McWeber Inc. stock on margin. Price paid was $75 per share. The initial margin is 60%. The maintenance margin is 25%. 

Assume the price did not fall. Instead the price increased to $92 and you sold the stock.During the nine month period in which you held the stock you received dividends of $.82 each quarter. Assume also that the annual interest rate charged on the loan amount is 8%.  

What is the holding period return on your invested capital (i.e. your equity investment) for the 9-month holding period? 

Answer rating: 100% (QA)

To calculate the holding period return on your equity investment we need to consider the following c... View the full answer