The stock of FNCB Bancorp, Inc. $($Ticker: FNCB$)$ currently trades for $$50.$ You buy $100$ shares of the company's stock. The stock pays annual dividends of $$2\mathrm{.}00$ per share paid quarterly.

a$.$ Compute your percentage return if the stock price of FNCB reaches $$55$ in six months $(10$ points$)$

$10\%$

b$.$ Now, imagine you instead bought these $100$ shares on margin. The initial margin requirement is $50\%.$ The margin loan carries an annual interest cost of $6\mathrm{.}00\%.$ Compute the percentage return on this position when six months from now the stock price reaches $$55?(25$ points$)$

c$.$ Compare your results from Part a$.$ and Part b$.$ and comment on the respective values. $(5$ Points$)$

$1$