You bought 1000 shares of stock a year ago for $50 per share on margin. You invested $30,000 of your own cash and borrowed the remaining $20,000 from the stockbroker at a 6 percent annual rate for borrowed funds. The stock paid $2.00 per share in dividends for the year and is currently at a price of $54 per share.

a. What was the total percentage yield of this margined investment to you?

b. What would the percentage yield have been if you had NOT used margin?