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You ve just opened a margin account with $ 5 8 , 9 0 5 at your local brokerage firm. You instruct your broker to

Youve just opened a margin account with $58,905 at your local brokerage firm. You instruct your broker to purchase 850 shares of Landon Golf stock, which currently sells for $99 per share. Suppose the call money rate is 5 percent and your broker charges you a spread of 1.5 percent over this rate. You hold the stock for three months (or 90 days) and sell at a price of $106 per share. The company paid a dividend of $0.63 per share the day before you sold your stock.
What is your total dollar return from this investment?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What is your effective annual rate of return?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

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