You are bullish on Telecom stock. The current market price is $250 per share, and you have $22,000 of your own to invest. You borrow an additional $22,000 from your broker at an interest rate of 6% per year and invest $44,000 in the stock.

Required: What will be your rate of return if the price of Telecom stock goes up by 16% during the next year? The stock currently pays no dividends.