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    300 shares of common stock on margin for $50 per share.

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    You purchase 300 shares of common stock on margin for $50 per share. The intial margin is 60% and the stock pays no dividend. Your rate of return would be______ if you sell the stock at $40 per share. Ignore interest on margin.

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    https://brainmass.com/business/accounting-for-corporations/shares-common-stock-margin-per-share-154703

    Solution Summary

    You purchase 300 shares of common stock on margin for $50 per share. The intial margin is 60% and the stock pays no dividend. Your rate of return would be______ if you sell the stock at $40 per share. Ignore interest on margin.

    $2.19

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