You Purchased 100 Shares of Highlight Company for $20 a Share

Multiple Choice

You purchased 100 shares of Highlight Company for $20 a share one year ago with a margin of 50 percent. The stock is currently selling for $28 a share, and no dividends were ever paid. The broker charges an annual interest rate of 8 percent and a $100 commission on both the purchase and sale of these shares. What is your annual rate of return on this investment?

A) 21 percent
B) 47 percent
C) 52 percent
D) 60 percent
E) 72 percent