What will be your rate of return if the price of stock

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Reference no: EM131917050

The current market price of XYZ is $80/share, and you have $9,000 of your own to invest. You borrow an additional $9,000 from your brokers at an interest rate of 9% per year and invest $18,000 in the stock. What will be your rate of return if the price of XYZ stock goes up by 8% during the next year? The stock currently pays no dividends.

Reference no: EM131917050

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