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Ferox Capital buys $16,000 worth of XYZ stock priced at $25 per share using 60% initial margin. The broker charges 8% on the margin loan

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Ferox Capital buys $16,000 worth of XYZ stock priced at $25 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 30% maintenance margin. The stock pays a $1.0-per-share dividend in 1 year, and then the stock is sold at $28.80 per share. What was Ferox Capital's rate of return? 0.67%21.83%30.67%26.67%22.33%28.00%

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