What is your total dollar return from this investment

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Reference no: EM13978872

You’ve just opened a margin account with $15,000 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $77 per share. Suppose the call money rate is 6.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for 4 months and sell at a price of $84 per share. The company paid a dividend of $.32 per share the day before you sold your stock.

A. What is your total dollar return from this investment?

B. What is your effective annual rate of return?

Reference no: EM13978872

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