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Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent...

Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,200 shares at $82 per share with an initial margin of 70 percent. One year later, the stock is selling for $88 per share and you close out your position. What is your return assuming no dividends are paid? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text General aCopy ▲· 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste B I 프 . 灬 Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard Font Alignment Number Styles Cells Edting AC334 AC AD AE AF AG AH Al Al AK AL AM AN AO 319 320 321 322 323 324 325 326 327 328 329 330 331 332 ANSWER RETURN ON EQUITY (73511.76-68880)/68880 TOTAL INVESTMENT OWN FUNDS BORROWED FUNDS 98400 68880 29520 1200 X 82- 70% STOCK PRICE AFTER A YEAR 88 AFTER A YEAR, VALUE OF INVESTMENT1200 X 88- 105600 A RAPAYMENT OF BORROWED FUNDS WITH (6.8% + 1.9%)-8.7% INTEREST 29520 *(1+0.087) 32088.24 B NET POSITION AFTER PAYMENT TO BORROWED FUNDS 73511.76 A-B 6.72% 334 335 336 337 4 EV PE EPS DIV ABNORMAL APV ROSS deberk MARGIN MONEY al tax . PB ROPİ eEVA MVA LEVERAGED BUY SWAP distress BRIGHAN CAP GAIN 09:15 27-01-2019

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