USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

Shares of RossCorp stock are selling for $$45$ per share. Brokerage commissions are $2$ percent for purchases and $2$ percent for sales. The interest rate on margin debt is $6\mathrm{.}25$ percent per year. The maintenance margin is $30$ percent.

Refer to Exhibit $3\mathrm{.}7.$ At the end of one year, shares of RossCorp stock are selling for $$35$ per share and the company paid dividends of $$0\mathrm{.}85$ per share. Assuming that you borrowed $25$ percent of cost of the purchase, what is your rate of return?

a$.33\mathrm{.}05$ percent

b$.25\mathrm{.}35$ percent

c$.40\mathrm{.}64$ percent

d$.33\mathrm{.}05$ percent

e$.23\mathrm{.}51$ percent