Explore BrainMass
Share

Explore BrainMass

    Return to the investors

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume that Vogl stock is priced at $50 per share and pays a dividend of $1 per share. An investor's purchases the stock on margin, paying $30 per hare and borrowing the remainder from the brokerage firm at 10% annualized interest. If, after one year, the stock is sold at a price of $60 per share, what is the return to the investors?

    © BrainMass Inc. brainmass.com October 9, 2019, 11:25 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/return-to-the-investors-256044

    Solution Preview

    The amount borrowed is $20 and the amount invested $30. At the end of ...

    Solution Summary

    The solution explains how to determine the rate of return to the investors

    $2.19