Hmm .. interesting!

Is there something with Maths below?

Powerful ROC from leveraging?

For example; if one has $110K capital to invest.

Without margin account:

One can fully invest $110K for e.g. 7% dividend yield


Leverage on margin account :

1. One can invest $100K for e.g. 7% dividend yield.

2. Leverage $40K on margin account at net 3.5% dividend yield after offsetting 3.5% interests payable to broker.

3. $10K as cash reserve to top up margin call when necessary


Does leveraging on margin account to improve yield on own capital look fantastic?


Or something wrong with the Maths?