(Choose 1 answer)
(18440)Exhibit 12-1
Mark would like to purchase a stock priced at $70. The stock is not expected to pay any dividends in the coming year. He can either put up the entire amount and purchase the stock, or borrow $35 from his brokerage firm at an annual interest rate of 12 percent and put up the remainder. Mark thinks he can sell the stock for $100 after one year.
Refer to Exhibit 12-1. If Mark borrows from his brokerage firm, his estimated return on the stock would be percent.
Α. 42.86
Β. 85.71
C. 73.71
D. 30.00
I want to Inisin
