What would your annual rate of return

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On August 1, 2019 you purchased 200 shares of WMT stock on margin at $120 per share. Assume that the initial margin was 60 percent and WMT paid $2 per share dividends on August 28, 2019. The broker charges an annual interest rate of 12 percent on the borrowed money compounded daily. Assume also that the dividends you received were invested at the annual interest rate of 12 percent.

What would your annual rate of return be if today you sell the stock for $125 per share?

Reference no: EM132382563

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