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

question 83

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 paid the full cost of the purchase,what is your rate of return if you sell RossCorp stock?

• A) -33.05%
• B) -23.42%
• C) 23.42%
• D) 33.05%
• E) -25.35%

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Definitions:

Proactive Interference

The tendency for older memories to interfere with the retrieval of newer memories, often hindering learning and recall.

Procedural Memories

A type of long-term memory that enables people to learn and perform tasks without conscious awareness, often referred to as the memory for how things are done.

Long-Term Memories

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