Problem 3-03 Suppose you buy a round lot of Francesca Industries stock (100 shares) on 60 percent margin when the stock is selling at $30 a share. The broker charges a 7 percent annual interest rate, and commissions are 2 percent of the stock value on the purchase and sale. A year later you receive a $0.35 per share dividend and sell the stock for $42 a share. What is your rate of return on Francesca Industries? Do not round intermediate calculations. Round your answer to two decimal places. % Problem 3-04 You decide to sell short 300 shares of Charlotte Horse Farms when it is selling at its yearly high of $56. Your broker tells you that your margin requirement is 65 percent and that the commission on the purchase is $525. While you are short the stock, Charlotte pays a $2.50 per share dividend. At the end of one year, you buy 300 shares of Charlotte at $44 to close out your position and are charged a commission of $510 and 10 percent interest on the money borrowed. What is your rate of return on the investment? Do not round intermediate calculations. Round your answer to two decimal places. % Problem 3-05 You own 200 shares of Shamrock Enterprises that you bought at $28 a share. The stock is now selling for $48 a share. You put in a stop loss order at $44. If the stock eventually declines in price to $33 a share, what would be your rate of return with and without the stop loss order? Round your answers to two decimal places. Rate of return with the stop loss: % Rate of return without the stop loss: %