You invest $ 6,000 in ABC stock . You also borrowed an additional $ 8,000 to increase your investment in ABC . The interest rate on the loan is 10 % . You purchased the stock at $ 20 per share and hold it for one year . At the end of the year , you sold the stock at $ 30 per share . What is your rate of return on this investment

You invest $ 6,000 in ABC stock . You also borrowed an additional $ 8,000 to increase your investment in ABC . The interest rate on the loan is 10 % . You purchased the stock at $ 20 per share and hold it for one year . At the end of the year , you sold the stock at $ 30 per share . What is your rate of return on this investment

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 5P

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