Yoursquove just opened a margin account with 15000 at your, Ask an Expert

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You’ve just opened a margin account with $15,000 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 6 months and sell at a price of $60 per share. The company paid a dividend of $.60 per share the day before you sold your stock.

What is your total dollar return from this investment?

What is your effective annual rate of return?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91529128

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