USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

You decide to sell $100$ shares of Davis Industries short when it is selling at its yearly high of $$35.$ Your broker tells you that your margin requirement is $55$ percent and that the commission on the sale is $$15.$ While you are short, Davis pays a $$0\mathrm{.}75$ per share dividend. At the end of one year you buy your Davis shares $($cover your short sale$)$ at $$30$ and are charged a commission of $$15$ and a $6$ percent interest rate.

Refer to Exhibit $3\mathrm{.}4.$ What is your rate of return on the investment?

a$.15\mathrm{.}49$ percent

b$.10\mathrm{.}48$ percent

c$.12\mathrm{.}87$ percent

d$.18\mathrm{.}87$ percent

e$.13\mathrm{.}98$ percent