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Six-month return on transaction

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An investor buys 200 shares of stock selling at ?$95 per share using a margin of 68?%. The stock pays annual dividends of $ 2.00 per share. A margin loan can be obtained at an annual interest cost of 6.7?%. Determine what return on invested capital the investor will realize if the price of the stock increases to ?$102 within six months. What is the annualized rate of return on this? transaction?

If the price of the stock increases to ?$102 within six? months, the? six-month return on this transaction is ?%. ? (Round to two decimal? places.)

Reference no: EM132134784

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