Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a margin of 60…
March 15th, 2022
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.
a. the annualized rate of return on this investment if you had paid cash, and
b. your rate of return with the margin purchase.