(B) You are thinking of purchasing a stock that is currently priced at $120 per share. It pays an annual dividend of $5.00 per share. Question 1: Assume that you buy the stock on margin paying $80 per share and borrowing the rest from your broker at 8.0% annual interest. You hold the stock for one year and then sell it for $150 per share. Calculate your return on the stock. Show your work. Check figure: R=39.75%. Question 2: Rework question 1, but assume that after holding the stock for one year, you sell it for $70 (instead of $150). Now what is the return on your stock? Show your work. Question 3: Rework question 1 again but assume that you instead decide to use your personal funds rather than buying on margin to make the stock purchase. Determine what the return on your stock is. Show all work. Check figure: R=29.17%.