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An investor bought 100 shares of Debbie's Cake House on margin for $65 a share. Below are the terms the investor's broker gave him for
An investor bought 100 shares of Debbie's Cake House on margin for $65 a share. Below are the terms the investor's broker gave him for the margin purchase:
Commissions: $0
Margin requirement = 60%
Interest rate on borrowed funds = 5%
After a year, the investor was able to sell the stock at $92. Also, during the year the investor held the stock, Debbie's Cake House paid an annual dividend of $3.00 per share.
What was the investors's percentage return earned on his investment.
Group of answer choices
46.15%
56.16%
58.89%
73.59%
66.78%
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