Provide solution You purchased 300 shares of commonstock on margin for $60 per share. Theinitial margin is 60% and the stock pays nodividend. What would your rate of returnbe if you sell the stock at $45 per share?Ignore interest on margin.

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Answered: You purchased 300 shares of common…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend. What would your rate of return be if you sell the stock at $45 per share? Ignore interest on margin.