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

question 65

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?

Utilize algebraic methods to solve equations and understand their applications in financial contexts.

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Definitions:

Festivities

Social events or gatherings, often celebrating particular holidays, cultures, or events, that involve various forms of entertainment and activities.

Group Pressure

The influence exerted by a group on its members to align their attitudes, beliefs, or behaviors with the group norms.

Solomon Asch

He was a psychologist best known for his research on conformity, showing how individuals often conform to the opinions of the majority even when they are contrary to their own beliefs.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is perceived as social norms.