Question:
Suppose you buy a round lot of Horse Inc stock on 55% margin when it is selling at 38.70 a share. The broker charges an 8 percent annual interest rate and commission are 4.5 percent of the total stock value on the purchase and 5 percent o n the sell. If at year-end you receive a 1.60 per share dividend and sell the stock for 47.30, what is your profit and return on the investment?