An investor purchases 1,400 shares of Beta Inc. at $22 per share [inclusive of commissions] and sells them after 1 year, during which time the stock also pays a dividend. The following information is also available:

Sale price = $24 Leverage ratio = 1.5 Call money rate = 5% Dividend = $0.20 per share Commission = $0.03 per share Maintenance margin = 20%

Leverage Ratio is an alternative way to express the Margin Requirement. The Leverage Ratio = [1 Margin Requirement] / Margin Requirement. Assume that the interest on the loan and the dividend are both paid at the end of the year. Adams return on this investment is closest to:

a. 17.16%

d. 22.39%

b. 18.52%

e. 24.52%

c. 19.35%

f. 28.52%