You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.Assume the initial margin is 50% and the maintenance margin is 30%.  One year later, the stock price closes at $172.58.  If the broker’s call loan rate is 2.00%, what is your return on equity?Note that Facebook pays no dividends.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
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You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.
Assume the initial margin is 50% and the maintenance margin is 30%.  One year later, the stock price closes at $172.58.  If the broker’s call loan rate is 2.00%, what is your return on equity?
Note that Facebook pays no dividends.

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