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Calculate total dollar return

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Reference no: EM133132344

Question - Assume that you would like to buy 100 shares of a stock that is currently priced at $ 70. The initial margin is 65% and maintenance margin is 35%.

If the stock pays $ 2 per share in annual dividend; the cost of borrowing is 3% per year; transaction costs are $80 calculate total dollar return and return on investment. Show your results step by step. Assume that you had bought the stock at $70 per share and it is now at $80 at the end of one year and you own 100 shares. Show your results below and in step by step.

Reference no: EM133132344

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