USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 62

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2 percent for purchases and 2 percent for sales. The interest rate on margin debt is 6.25 percent per year. The maintenance margin is 30 percent.
-Refer to Exhibit 3.7. 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 paid the full cost of the purchase, what is your rate of return if you sell RossCorp stock?

• A) 18.08 percent
• B) 23.51 percent
• C) 22.32 percent
• D) 14.96 percent
• E) 19.28 percent

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Definitions:

Batson V.Kentucky

A landmark Supreme Court decision ruling that a prosecutor's use of peremptory challenge in jury selection based on race is unconstitutional, violating the Equal Protection Clause.

Peremptory Challenges

The right of attorneys during jury selection to reject a certain number of potential jurors without stating a reason.

Due Process Clause

A constitutional provision in the Fifth and Fourteenth Amendments that guarantees individuals fair treatment through the normal judicial system, especially as a safeguard to protect against arbitrary denial of life, liberty, or property.

Dissenting Opinion

A separate judicial opinion written by a judge who disagrees with the majority's decision in a court ruling.