The price of Walmart stock is currently $34.64 and you decide to buy 170 shares on margin. The inital margin is 60% and the broker's maintenance margin is 30%. The broker charges an effective interest rate of 4% on the margin loan.

Part 1) After the 7 months, the stock price has changed to $31.58 and the stock has paid dividends of $1.36 per share. What is the new percentage margin in the account?

Part 2) What is your effective annual return?