Kizspy | Question: 24 (Choose 1 answer)
Karen just purchased a stock costing $33 on margin, paying $23 and borrowing the remainder from a brokerage firm at 15 percent annual interest. The stock pays an annual dividend of $2. If Karen sells the stock after one year at a price of $50, what is the return on the stock?
A. 27.60 percent
B. 82.61 percent
C. 76.09 percent
D. 58.70 percent
