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Youve just opened a margin account with $29,520 at your local brokerage firm. You instruct your broker to purchase 600 shares of Landon Golf stock,
Youve just opened a margin account with $29,520 at your local brokerage firm. You instruct your broker to purchase 600 shares of Landon Golf stock, which currently sells for $82 per share. Suppose the call money rate is 7 percent and your broker charges you a spread of 1 percent over this rate. You hold the stock for four months and sell at a price of $90 per share. The company paid a dividend of $0.44 per share the day before you sold your stock. a. What is your total dollar return from this investment?
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