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

---

Definitions:

Agreement Issue

A problem or dispute arising from differing interpretations or violations of a formal agreement.

Noun

A part of speech that names a person, place, thing, or idea.

Subordinate Clauses

Clauses that cannot stand alone as complete sentences and function within a sentence to provide additional information.

Transitions

Words or phrases that provide a connection between ideas, sentences, and paragraphs, helping to guide the reader through the text smoothly.