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Youve just opened a margin account with $25,970 at your local brokerage firm. You instruct your broker to purchase 700 shares of Landon Golf stock,
Youve just opened a margin account with $25,970 at your local brokerage firm. You instruct your broker to purchase 700 shares of Landon Golf stock, which currently sells for $53 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 six months (or 180 days) and sell at a price of $60 per share. The company paid a dividend of $0.60 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
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