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What is your percentage return on assets for this trade

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Reference no: EM132855182

Question - The current market price for XYZ is $22 per share. Initial margin is 50%, maintenance margin is 35% and margin interest is 1.75% per year. XYZ pays annual cash dividends of $0.95 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 $28 per share at the end of the year. What is your percentage return on assets for this trade?

Reference no: EM132855182

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