Ed decides to invest a portion of his ill-gotten millions in…
Ed decides to invest a portion of his ill-gotten millions into some Apple stock. However, to make it more exciting, he has decided to purchase the stock on margin (whoo!). Assume Ed purchases 1,000 shares of Apple at $460/share. The Margin Requirement on the account is 60%, and there is a 9% annual interest rate associated with borrowed funds. Commissions on all transactions in the account are equal to 1% Over the course of the year, Apple provides dividends equal to $10/share. What is the amount of cash (round to nearest whole dollar) invested by Ed in this transaction?
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