Suppose the call money rate is 5.8 percent, and you pay a spread of 2.5 percent over

Question:

Suppose the call money rate is 5.8 percent, and you pay a spread of 2.5 percent over that. You buy 800 shares of stock at $43 per share. You put up $15,000. One year later, the stock is selling for $58 per share, and you close out your position. What is your return assuming a of $.64 per share is paid?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...