You purchased 100 shares of Facebook, Inc. common stock on margin at $169.25 per share.Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $172.58. If the broker’s call loan rate is 2.00%, what is your return on equity?Note that Facebook pays no dividends.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here