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

Multiple Choice

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.