Assume that Ravi buys XXXXXXXXXXshares of RS at $2 per share with a minimum cash investment of $2500 and that the share does take off and its price rises to $4 per share in a year. a. What is the...

Assume that Ravi buys 10 000 shares of RS at $2 per share with a minimum cash investment of $2500 and that the share does take off and its price rises to $4 per share in a year.

a. What is the return on invested capital for this transaction?

b. What return would Ravi have earned if he had bought the shares without using a margin loan—that is, if he had used all of his own money?