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Unformatted text preview: rate of return on this investment? 3. Suppose you buy a round lot of Altman Industries stock on 50% margin when it is selling at $35 a share. The broker charges a 10 percent annual interest rate and commissions are 5 percent of the total stock value on both the purchase and the sale. If at year end you receive a $1.00 per share dividend and sell the stock for $42.63, what is your rate of return on the investment?...
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This note was uploaded on 05/27/2011 for the course FIN 4504 taught by Professor Wang during the Fall '10 term at Florida A&M.
- Fall '10