Assume the investor buys 100 shares of stock for $10 a share and sells it for $14. Also assume the margin requirement is 60%, the commission rate is 5% of the purchase or sale price, the interest rate is 10% and the stock pays a dividend of $1.00 a share. What is your rate of return on the stock if it is a margin purchase? Use the equation R=[selling price of stock-initial investment by investor- loan payments on borrowed funds (principal and interest)-brokers commission-dividend payment]/ initial investment by investor