The shares of Ecobank Ghana Ltd (EGH) are currently trading at ₵7.50 per 
share on the Ghana Stock Exchange (GSE). Ruth is bullish on EGH shares and
is considering buying 10,000 shares of EGH. 
Ruth has a share dealing account with a broker, and is eligible to trade on 
margin. Her broker charges brokerage commissions of 1.2% for purchases and 
sales; initial margin deposit of 60% and a maintenance margin of 25%. The 
interest rate on margin debt is 4% per annum. 
Other costs for trading securities (purchases and sales) on the Ghana Stock 
Exchange include: 35 basis points as GSE fees; 15 basis points as Securities 
Exchange Commission fees; 15 basis points as Securities Depository fees; and 5 
basis points as Market Development fees.
a. Assuming that Ruth paid the full cost of the purchase and the EGH paid 
dividends of ₵0.80 per share during the year, what is her rate of return if at 
the end of the year she sells the shares for: 
i. ₵8.00 per share?
ii. ₵6.50 per share?