Suppose You Buy a Round Lot of DG Solutions Stock

Multiple Choice

Suppose you buy a round lot of DG Solutions stock on 60% 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%
B) -12.84%
C) -10.95%
D) 21.84%
E) 28.38%