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How do calculate the return from buying the stock on margin

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Mr. Salman wants to buy maximum number of odd lot shares of Atif Habib Investment Limited. The price per share is Rs. 75. Salman Buy maximum number of Arif Habib odd lot share on margin. He paid Rs. 7200 in cash and borrowing the rest of odd lot shares from brokerage firm at an annual interest rate of 12%. He sells the shares for Rs. 90 per share after one year and repays the brokerage firm borrowed amount and interest. Atif Habib paid dividend Re.3 per share over the year.

Required:

Problem 1: Calculate the return from buying the stock on margin.

Reference no: EM132668842

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