You purchased 100 shares of common stock on margin for $35 per share.The initial margin is 50%, and the stock pays no dividend.What would your rate of return be if you sell the stock at $42 per share? Ignore interest on margin.
A)28%
B)33%
C)14%
D)40%

Question

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The Answer of You purchased 100 shares of common stock on margin for $35 per share.The initial margin is 50%, and the stock pays no dividend.What would your rate of return be if you sell the stock at $42 per share? Ignore interest on margin.
A)28%
B)33%
C)14%
D)40%

You Purchased 100 Shares of Common Stock on Margin for $35