1.

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $37. Your broker requires you to deposit $21,400.

What is the initial margin requirement? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

2. You just sold short 650 shares of Wetscope, Inc., a fledgling software firm, at $75 per share. You cover your short when the price hits $79 per share one year later. If the company paid $0.52 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)