Kindly help me with this question general Accounting An investor purchases 100 shares of XYZ Corporation at$45 per share with a margin requirement of 60%. Thestock price rises to $58 per share after one year.Calculate the percentage rate of return, ignoringcommissions and other expenses.

Step 1: Define Percentage Rate of ReturnPercentage Rate of Return measures the profit earned on an…

Answered: An investor purchases 100 shares of XYZ…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 8P

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An investor purchases 100 shares of XYZ Corporation at $45 per share with a margin requirement of 60%. The stock price rises to $58 per share after one year. Calculate the percentage rate of return, ignoring commissions and other expenses.