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

question 85

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 $35 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)33.05%
• B)-33.05%
• C)-23.51%
• D)-25.35%
• E)-40.64%

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Definitions:

Agricultural Products

Goods produced through farming and agriculture, including crops like wheat, corn, and rice, as well as livestock.

Textiles

Materials made from fibers, threads, or fabrics, produced through weaving, knitting, or other manufacturing processes, used for clothing, furnishings, and various industrial applications.

Weapons

Tools or devices designed for inflicting harm or physical damage, used in conflict or hunting, ranging from simple implements to complex machinery.

Ethnic Rivalries

Conflicts and competition between different ethnic groups, often based on historical grievances, competition for resources, or ideological differences.