Yoursquove just opened a margin account with 18000 at your, Ask an Expert

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You’ve just opened a margin account with $18,000 at your local brokerage firm. You instruct your broker to purchase 500 shares of Landon Golf stock, which currently sells for $84 per share. Suppose the call money rate is 7 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for 6 months and sell at a price of $91 per share. The company paid a dividend of $0.46 per share the day before you sold your stock.

What is your total dollar return from this investment? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

What is your effective annual rate of return? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92411918

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