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Johnny wishes to start a margin occount in order to purchase a total of $50.000 worth of shares in xyz Limited xyz's current share price

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Johnny wishes to start a margin occount in order to purchase a total of $50.000 worth of shares in xyz Limited xyz's current share price is $25, so he purchases a rotal of 2000 shares: His initiol margin will be 60%. borrowing the remaining 40% ot an interest rate of 8% per annum. Twelve months later the shares had paid a cash dividend of $1 each and had a market value of $55,000. What percentoge rate of return did Johnny earn on this investment? Seloct one: a. 57,000/550,000=14% b. 55,400/$50,000=10.8% c. $5,400/$30,000=18%

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