Round lot of francesca industries stock

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Reference no: EM13720379

Suppose you buy a round lot of Francesca Industries stock on 55 percent margin when the stock is selling at $20 a share. The broker charges a 10 percent annual interest rate, and commissions are 3 percent of the stock value on the purchase and sale. A year later, you receive a $0.50 per share dividend and sell the stock for 27. What is your rate of return on Francesca Industries?

Reference no: EM13720379

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