Karen just purchased a stock costing 33 on margin paying 23, Ask an Expert

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Karen just purchased a stock costing $33 on margin, paying $23 and borrowing the remainder from a brokerage firm at 15 percent annual interest. The stock pays an annual dividend of $2. If Karen sells the stock after one year at a price of $50, what is the return on the stock?

a. 27.60 percent

b. 82.61 percent

c. 76.09 percent

d. 58.70 percent

e. none of the above

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Financial Management, Finance

Category:- Financial Management
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