What is your rate of return on investment

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Reference no: EM131838596

Suppose you buy a round lot (100 shares) of Dog Solutions stock on 60% margin when it is selling at S10 a share. The broker charges an 8 percent annual interest rate and commissions are one-half of one percent of the total stock value on the purchase and one quarter of one percent on the sale. If at year end you receive a S0.10 per share dividend and sell the stock for S13, what is your rate of return on the investment?

Reference no: EM131838596

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