Multiple Choice
Brandon bought 100 shares of stock for $15.00 per share on 70% margin.Assume Brandon holds the stock for one year and that his interest costs will be $45 over the holding period.Gerry also received dividends amounting to $0.30 per share.Ignoring commissions, what is his percentage return on invested capital if he sells the stock for $34 a share?
A) 60.0%
B) 21.9%
C) 17.6%
D) 13.3%
Correct Answer:
Verified
Correct Answer:
Verified
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