Percentage return on assets for trade

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The current market price for XYZ is $55 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year. XYZ pays annual cash dividends of $2.15 per share. You believe the stock price will increase over the next year and wish to trade long using margin. Suppose you are correct and the stock rises to $65 per share at the end of the year. What is your percentage return on assets for this trade? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

Reference no: EM132627155

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