Karen purchased a stock priced at $33 on margin, paying $23 and borrowing the remainder from a brokerage firm at 15 percent annual interest. The stock pays an annual dividend of $2. If Karen sells the stock after one year at a price of $50, what is her return on the stock?
A)27.60 percent
B)82.61 percent
C)76.09 percent
D)58.70 percent
E)None of these are correct.

Question

Quizplus · Accepted Answer

The Answer of Karen purchased a stock priced at $33 on margin, paying $23 and borrowing the remainder from a brokerage firm at 15 percent annual interest. The stock pays an annual dividend of $2. If Karen sells the stock after one year at a price of $50, what is her return on the stock?
A)27.60 percent
B)82.61 percent
C)76.09 percent
D)58.70 percent
E)None of these are correct.

Karen Purchased a Stock Priced at $33 on Margin, Paying