You bought $$10,000$ worth of stock in a company that, after some good research, you believed would have a large price increase over the next year. You were right. The stock rose $50\mathrm{.}0\%$ in $12$ months, nearly doubling in price. And maybe smartly, you decided to sell the stock and take your profits.

Of that $$10,000,$ just $$2,000$ was yours and $$8,000$ was borrowed money, or debt. Let's ignore interest on a one$-$year loan. If you paid back the borrowed money once you sold the stock, what is your return on equity?