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A stock is initially priced at $40, and pays an annual $1.5 dividend. An investor uses cash to pay $20 a share and borrows the

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A stock is initially priced at $40, and pays an annual $1.5 dividend. An investor uses cash to pay $20 a share and borrows the remaining funds at a 10 percent annual interest. What is the return if the investor sells the stock for $50 at the end of one year? A) 47.5 percent (HB) 32.5 percent (C) 25. 5 percent D) 20.0 percent

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