Question: You ve just opened a margin account with $ 1 5 , 0 0 0 at your local brokerage firm. You instruct your broker to
Youve just opened a margin account with $ at your local brokerage firm. You instruct your broker to purchase shares of Landon Golf stock, which currently sells for $ per share. Suppose the call money rate is percent and your broker charges you a spread of percent over this rate. You hold the stock for months and sell at a price of $ per share. The company paid a dividend of $ per share the day before you sold your stock.
What is your total dollar return from this investment? Round your answer to decimal places. Omit the $ sign in your response.
Dollar return $
What is your effective annual rate of return? Round your answer to decimal places. Omit the sign in your response.
Effective annual return
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