Part A: You make a cash purchase of 100 shares of a stock at $55 per share. You hold the stock for one year, during which dividends of $5 a share are distributed. Commissions are 2 percent of the value of a purchase or sale.

Assume all of the same conditions of the transaction as in part a (i.e. stock purchase price, dividends, commission) but now you make the purchase using margin. If the Margin Requirement is 60% and the interest rate on borrowed funds is 10%, what is your percentage earned at the following prices:

1. $60

2. $70