One year ago, you bought 6,000 shares of Katinka Inc. common stock for $48.26 per share using your margin account with a 50% initial margin requirement. Your broker charges 6.2% per year on margin loans. Today, the stock is selling for $50.98 per share. What is your return if you sell all of your shares and pay off your margin loan and interest? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%).
**I'm having a difficult time with this question. I'm not sure if I should subtract the total loan amount from the total return. Please give a formula! Currently I'm between:
ROI= (Sale value - interest - purchase value - loan amount) / initial equity
or
ROI = (Sale value - interest - purchase value) / initial equity