Exhibit 4.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 56

Multiple Choice

Exhibit 4.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interest rate on margin debt is 6.25% per year. The maintenance margin is 30%.
-Refer to Exhibit 4.7.At the end of one year shares of RossCorp stock are selling for $55 per share and the company paid dividends of $0.85 per share.Assuming that you paid the full cost of the purchase,what is your rate of return if you sell RossCorp stock?

• A) 18.08%
• B) 23.51%
• C) 22.32%
• D) 14.96%
• E) 19.28%

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Definitions:

Priming

The process by which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Infant Memory

The capacity for infants to encode, store, and retrieve information, which begins to develop shortly after birth.

Memory Item

A specific piece of information or knowledge that has been retained by the brain and can be recalled or remembered.

Enhanced Encoding

The process of improving the way information is absorbed and stored in the memory through the use of techniques or stimuli that strengthen memory traces.