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You ve just opened a margin account with $ 1 5 , 0 0 0 at your local brokerage firm. You instruct your broker to

Youve 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 $83 per share. Suppose the call money rate is 7 percent and your broker charges you a spread of 1.5 percent over this rate. You hold the stock for 6 months and sell at a price of $90 per share. The company paid a dividend of $0.45 per share the day before you sold your stock.
1.
What is your total dollar return from this investment? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Dollar return $
2.
What is your effective annual rate of return? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Effective annual return
%

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