In order to get any points for this question:

Please write all formulas used, in the order you used, indicate the input values used in the formulas, and clearly show your final answer. Example:

Y= (axb) + (cxd)

a=5, b=2, c= 1 and d=3

y= 10+3= 13 , so the final answer is y=13.

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Question: An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 9% on the margin loan and requires a 40% maintenance margin. One year from now, the stock pays a $1.00 per share dividend, and then the stock is sold at $27 per share. Please calculate the above investor's rate of return.