Youve just opened a margin account with $25,740 at your local brokerage firm. You instruct your broker to purchase 450 shares of Landon Golf stock, which currently sells for $88 per share. Suppose the call money rate is 5.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for four months and sell at a price of $95 per share. The company paid a dividend of $0.55 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.)