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You purchased 1 , 0 0 0 shares of common stock on margin for $ 5 0 per share using 5 0 % initial margin.

You purchased 1,000 shares of common stock on margin for $50 per share using 50% initial margin. The broker charges 10% on the margin loan and requires a 30% maintenance margin. After one year, the stock pays a $1 per share dividend and then you sell the stock at $55 per share. Compute your rate of return.
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