USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 39

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 borrowed 25 percent of cost of the purchase, what is your rate of return?

• A) -23.51 percent
• B) 29.35 percent
• C) 23.51 percent
• D) 5.21 percent
• E) 10.06 percent

---

Definitions:

Happiness

A state of well-being and contentment experienced by an individual.

Cope With Stress

The ability to manage and mitigate stress through various strategies and techniques.

Job Requirements

The specific qualifications, experiences, and skills that an employer determines are necessary to perform a given job.

Organizational Environments

The physical and social factors that surround the organization and can affect its performance and operations.