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Imagine buying 100 shares of a $25 stock on a 60-percent margin that pays an annual...

Imagine buying 100 shares of a $25 stock on a 60-percent margin that pays an annual dividend of $1 and selling them a year later at $30. If commssions are 2% per trade and interest on borrowing money is 4%, what is your rate of return?

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Expert Solution

You can calculate your Rate of return with simple formula as below

Rate of return = (Current value - Original value) / Original value * 100

I have calculated the rate of return handwritten and uploaded, please find the same and let me know if you satisfied with this or need more clarification.

You Answer for this question is 12.94%

jeff jeffy answered 9 hours ago
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