What is the return to the investor

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Reference no: EM131230634

Buying on Margin:

Assume that Vogl stock is priced at $50 per share and pays a dividend of $1 per share. An investor purchases the stock on margin, paying $30 per share and borrowing the remainder from the brokerage firm at 10 percent annualized interest.

If, after one year, the stock is sold at a price of $60 per share, what is the return to the investor?

Reference no: EM131230634

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