David bought 100 shares of a stock for $30 per share on 70% margin. Assume he holds the stock for one year and that his interest costs will be $100 over the holding period. Ignoring commissions, what is his perc on invested capital if the stock price went up 15% ? Group of answer choices 15.00% 18.22 % 16.67% 13.80%

David bought 100 shares of a stock for $30 per share on 70% margin. Assume he holds the stock for one year and that his interest costs will be $100 over the holding period. Ignoring commissions, what is his perc on invested capital if the stock price went up 15% ? Group of answer choices 15.00% 18.22 % 16.67% 13.80%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 2P

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