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You've just opened a margin account with $13.475 at your local brokerage firm. You instruct your broker to purchase 550 shares of Landon Golf stock,
You've just opened a margin account with $13.475 at your local brokerage firm. You instruct your broker to purchase 550 shares of Landon Golf stock, which currently sells for $49 per share Suppose the call money rate is 6 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for three months and sell at a price of $56 per share. The company paid a dividend of $0.28 per share the day before you sold your stock a. What is your total dollar return from this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3 Answer is not complete. Dollar return b. What is your effective annual rate of return? (Do not round intermediate caiculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct Effective ansual etum 167 60 167 60 %
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