Multiple Choice
Emily bought 200 shares of ABC Co. stock for $29.00 per share on 60% margin. Assume she holds the stock for one year and that her interest costs will be $80 over the holding period. Ignoring commissions, what is her percentage return (loss) on invested capital if the stock price went down 10%?
A) -32%
B) -19%
C) -16%
D) -10%
Correct Answer:
Verified
Correct Answer:
Verified
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