Question: Jude bought CPP stock at $40 per share using 60% initial margin. The broker charges 8% on the loan and requires a 35% maintenance margin.

Jude bought CPP stock at $40 per share using 60% initial margin. The broker charges 8% on the loan and requires a 35% maintenance margin.

CPP paid $1.00 per share dividend over the year. Now the stock is at $46 per share. What is Jude's rate of return?

Group of answer choices

17.50%

23.83%

19.67%

25.75%

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