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

question 30

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 borrowed 25% of cost of the purchase, what is your rate of return?

• A)-23.51%
• B)29.35%
• C)23.51%
• D)5.21%
• E)10.06%

---

Definitions:

Altruistic Aim

The goal of acting with selfless concern for the well-being of others.

Extrinsic Goal

An objective that is motivated by external factors, such as rewards or recognition from others.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and promoting relaxation and recovery, often referred to as the "rest and digest" system.

Autonomic Nervous System

The part of the nervous system responsible for involuntary functions such as heart rate, digestion, and respiratory rate, comprising sympathetic and parasympathetic divisions.