What is kobes rate of return

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Question: Assume that Penguin stock is selling at $100 per share and pays a dividend of $3 per share. Kobe buys the stock on margin, putting up $70 in cash and borrowing the remainder. The margin loan has an interest rate of 5%. One year later, Penguin stock is trading at $80 per share. What is Kobe's rate of return?

Reference no: EM133325714

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