Exhibit 12-1 Mark Would Like to Purchase a Stock Priced at $70.The

question 57

Multiple Choice

Exhibit 12-1
Mark would like to purchase a stock priced at $70.The stock is not expected to pay any dividends in the coming year.He can either put up the entire amount and purchase the stock, or borrow $35 from his brokerage firm at an annual interest rate of 12 percent and put up the remainder.Mark thinks he can sell the stock for $100 after one year.
-Refer to Exhibit 12-1.If Mark borrows from his brokerage firm, his estimated return on the stock would be ____ percent.

• A)42.86
• B)85.71
• C)73.71
• D)30.00

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Definitions:

Fruiting Bodies

The reproductive structures produced by fungi, where spores are formed and subsequently disperse for reproduction.

Mature Zygospore

A thick-walled resting spore produced by the union of two similar fungal cells, serving as a form of resistance and survival in harsh conditions.

Young Zygospore

An early developmental stage of a zygospore, which is a thick-walled spore produced by the fusion of two similar gametes in fungi.

Haploid

Refers to cells that contain one complete set of chromosomes, typical of gametes in sexually reproducing organisms.