An investor buys

300

shares of stock selling at

$93

per share using a margin of

58%.

The stock pays annual dividends of

$2.00

per share. A margin loan can be obtained at an annual interest cost of

7.3%.

Determine what return on invested capital the investor will realize if the price of the stock increases to $102

within six months.

What is the annualized rate of return on this transaction?