QUESTIONS 79 THROUGH 90 RELATE TO EQUITY INVESTMENTS

85. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013 85. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
85. An investor buys stock on margin and holds the position for exactly one year. Shares purchased 700 Purchase price $22/share Call money rate 4% Dividend $0.60/share Leverage ratio 1.6 Total return on the investment 12% Assuming that the interest on the loan and the dividend are both paid at the end of the year, the price at which the investor sold the stock is closest to: A. $23.05. B. $23.38. C. $23.98.