Megan bought 3 lots shares of stock at a price of $15 a share. She used her 60% margin account to make the purchase. Megan sold her stock after a year for $17 a share. She paid $10 transaction fee per transaction and $20 interest fee, what is Megan's return on investor's equity for this investment? 67.26% 19.00% 20.74% 10.50%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
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Megan bought 3 lots shares of stock at a price of $15 a share. She used her 60%
margin account to make the purchase. Megan sold her stock after a year for $17 a
share. She paid $10 transaction fee per transaction and $20 interest fee, what is
Megan's return on investor's equity for this investment?
O 67.26%
19.00%
O 20.74%
10.50%
Transcribed Image Text:Megan bought 3 lots shares of stock at a price of $15 a share. She used her 60% margin account to make the purchase. Megan sold her stock after a year for $17 a share. She paid $10 transaction fee per transaction and $20 interest fee, what is Megan's return on investor's equity for this investment? O 67.26% 19.00% O 20.74% 10.50%
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