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Suppose you buy a round lot of DG Solutions stock on 60 percent margin when...

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Accounting

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Suppose you buy a round lot of DG Solutions stock on 60 percent margin when it is selling at $55 a share. The broker charges a 10 percent annual interest rate and commissions are 3 percent of the total stock value on both the purchase and the sale. If at year end you receive a $1.10 per share dividend and sell the stock for 55 5/8, what is your rate of return on the investment? 2.28.38 percent 1.21 84 percent C-12.84 percent O d.-10.38 percent -10.95 percent

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