Calculate? marlene annualized rate of return

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Marlene Bellamy purchased 300 shares of Writeline Communications stock at $ 55.18 per share using the prevailing minimum initial margin requirement of 52 %. She held the stock for exactly 7 months and sold it without any brokerage costs at the end of that period. During the 7-month holding? period, the stock paid $ 1.69 per share in cash dividends. Marlene was charged 7.2 % annual interest on the margin loan. The minimum maintenance margin was 25 %.

Use each of the following sale prices at the end of the 7-month holding period to calculate? Marlene's annualized rate of return on the Writeline Communications stock? transaction: ?(1)$ 50.79, ?(2)$ 60.05, and? (3) $ 70.47.

Reference no: EM133069097

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