Amy bought 100 shares of ABC Co. stock for RM58.00 per share on 60% margin. Assume she holds the stock for one year and that her interest costs will be $160 over the holding period. Ignoring commissions, what is her percentage return on invested capital if the stock price went down 10%?
Amy bought 100 shares of ABC Co. stock for RM58.00 per share on 60% margin. Assume she holds the stock for one year and that her interest costs will be $160 over the holding period. Ignoring commissions, what is her percentage return on invested capital if the stock price went down 10%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Amy bought 100 shares of ABC Co. stock for RM58.00 per share on 60% margin.
Assume she holds the stock for one year and that her interest costs will be $160
over the holding period. Ignoring commissions, what is her percentage return on
invested capital if the stock price went down 10%?
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