You bought 4000 shares of stock on margin 9 months ago. At that time, you opened your
Fantastic news! We've Found the answer you've been seeking!
Question:
- You bought 4000 shares of stock on margin 9 months ago. At that time, you opened your margin account and paid $32.30 a share, investing just enough to hit the necessary initial margin requirement of 25%. The remainder of the investment was financed by a broker loan, interest and principal paid when you close your position, and charging 6% EAR. Given that you have just sold your entire position and realized a net annualized return of 30%, what must be the current price of the stock?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date: