Three years ago, you bought 300 shares of Kayleigh Milk Co. for $45 a share with a margin of 50 percent. Currently, the Kayleigh stock is selling for $50 a share. Assume there are no dividends and ignore commissions. Do not round intermediate calculations. Round your answers to two decimal places. Required:
a. Assuming that you pay cash for the stock, compute the annualized rate of return on this investment if you had paid cash.
b. Assuming that you used the maximum leverage in buying the stock, compute your rate of return with the margin purchase.

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no