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Question: wade bought 100 shares of stock for 30 per share...

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Wade bought 100 shares of stock for $30 per share on 50% margin. Assume he holds the stock for one year and that his interest costs will be $45 over the holding period. He also received dividends amounting to $0.30 per share. Ignoring commissions, what is his percentage return on invested capital if he sells the stock for $39 a share?

26%

42%

59%

30%

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