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You purchased 100 shares of common stock on margin for $35 per share. The initial margin is 60%, and the stock pays no dividend. What

You purchased 100 shares of common stock on margin for $35 per share.
The initial margin is 60%, and the stock pays no dividend.
What would your rate of return be if you sell the stock at $42 per share?

Ignore interest on margin.

a.

35.33%

b.

40.44%

c.

28.33%

d.

33.33%

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