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Youve just opened a margin account with $16,380 at your local brokerage firm. You instruct your broker to purchase 400 shares of Landon Golf stock,

Youve just opened a margin account with $16,380 at your local brokerage firm. You instruct your broker to purchase 400 shares of Landon Golf stock, which currently sells for $63 per share. Suppose the call money rate is 5.5 percent and your broker charges you a spread of 1.5 percent over this rate. You hold the stock for five months and sell at a price of $70 per share. The company paid a dividend of $.54 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.) b. What is your effective annual rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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