What is return with the margin purchase


Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a margin of 60 percent. Currently, the Kayleigh stock is selling for $45 a share. Assuming no dividends and ignoring commissions, compute:

a. the annualized rate of return on this investment if you had paid cash, and
b. your rate of return with the margin purchase.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is return with the margin purchase
Reference No:- TGS0519422

Expected delivery within 24 Hours