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Resources e that a stock is priced at $25 and pays an annual dividend of SI per share A . Assume that an investor purchases the stock paying 100%...

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Resourcese that a stock is priced at $25 and pays an annual dividend of SI per shareA . Assume that an investor purchases the stock paying 100% cash . After one year , theinvestor sells the stock for $32 .75 per share ( after collecting the dividend ) . Thepercentage return on this investment wasB . Assume that an investor purchases the stock on margin , paying SIS per share andborrowing the remainder from the brokerage firm with a 10 % annual interest rateAfter one year , the investor sells the stock for $32 75 per share ( after collecting thedividend ) . The percentage return on this investment wasC . If the market is efficient , will any rational investor buy stocks on margin ? If sowhich investors will do this ? If not , why not ?
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