27. Shares of Star Inc. stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interest rate on margin debt is 6.25% per year. The maintenance margin is 30%. At the end of one year shares of Star Inc. stock are selling for $55 per share and the company paid dividends of $0.85 per share. Assuming that 346 you paid the full cost of the purchase, what is your rate of return if you sell Star Inc. stock?* O A) 18.08% O B) 19.28% O C) 22.32% O D) 23.51% O E) None of thebove
27. Shares of Star Inc. stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interest rate on margin debt is 6.25% per year. The maintenance margin is 30%. At the end of one year shares of Star Inc. stock are selling for $55 per share and the company paid dividends of $0.85 per share. Assuming that 346 you paid the full cost of the purchase, what is your rate of return if you sell Star Inc. stock?* O A) 18.08% O B) 19.28% O C) 22.32% O D) 23.51% O E) None of thebove
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 12PROB
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