Question: You've just opened a margin account with $12,100 at your local brokerage firm. You instruct your broker to purchase 1,000 shares of Landon Golf stock,

You've just opened a margin account with $12,100 at your local

brokerage firm. You instruct your broker to purchase 1,000 shares of Landon

Golf stock, which currently sells for $22 per share. Suppose the call

You've just opened a margin account with $12,100 at your local brokerage firm. You instruct your broker to purchase 1,000 shares of Landon Golf stock, which currently sells for $22 per share. Suppose the call money rate is 6.5 percent and your broker charges you a spread of 1.5 percent over this rate. You hold the stock for six months and sell at a price of $29 per share. The company paid a dividend of $.34 per share the day before you sold your stock. a. What is your total dollar return from this investment? b. What is your effective annual rate of return

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