Suppose You Buy a Round Lot of DG Solutions Stock

Suppose you buy a round lot of DG Solutions stock on 60 percent margin when it is selling at $55 a share. The broker charges a 10 percent annual interest rate and commissions are 3 percent of the total stock value on both the purchase and the sale. If at year end you receive a $1.10 per share dividend and sell the stock for 55 5/8, what is your rate of return on the investment?

A) -10.38 percent
B) -12.84 percent
C) -10.95 percent
D) 21.84 percent
E) 28.38 percent