Suppose you purchase 900 shares of stock at $74 per share with an initial cash investment of $32,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate.

a.

Calculate your return on investment one year later if the share price is $82. Suppose instead you had simply purchased $32,000 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Rate of return	%
Without margin, rate of return	%

b.

Calculate your return on investment one year later if the share price is $74. Suppose instead you had simply purchased $32,000 of stock with no margin. What would your rate of return have been now? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Rate of return	%
Without margin, rate of return	%

c.

Calculate your return on investment one year later if the share price is $58. Suppose instead you had simply purchased $32,000 of stock with no margin. What would your rate of return have been now?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Rate of return	%
Without margin, rate of return	%