Question: You bought ( $ 8 , 0 0 0 ) worth of stock in a company that, after some good research, you
You bought $ worth of stock in a company that, after some good research, you believed would have a large price increase over the next year. You were right. The stock rose in months. And maybe smartly, you decided to sell the stock and take your profits. Of that $ just $ was yours and $ was borrowed money, or debt. Let's ignore interest on a oneyear loan. If you paid back the borrowed money once you sold the stock, what is your return on equity?about None of the answers here is correct.about about
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