Question: You obtain a 4 0 % Margin Loan ( Loan / Value ) at annual rate of 4 % to buy 1 5 0 shares

You obtain a 40% Margin Loan (Loan/Value) at annual rate of 4% to buy 150 shares of IBM $190. After 6 months later you sold all the shares at $215. During the hold period you recieved a $3.50 per share dividend. What is your $ profit and return of your investment (Please pay attention of the time of sale).

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Initial Investment Bought 150 shares of IBM at 190 per share so the total cost was 150 190 28500 Mar... View full answer

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