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%

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Definitions:

Dominant Socializing Agent

The primary entity or influence, such as family, education, or media, that plays a crucial role in shaping an individual's values, beliefs, behaviors, and social norms.

Companion Animal

An animal kept primarily for a person's company or entertainment rather than as a working animal, livestock, or laboratory animal.