You've just opened a margin account with $33,880 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $77 per share. Suppose the call money rateis 6.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for four months and sell at a price of $84 per share. The company paid a dividend of $.32 per share the day beforeyou sold your stock.a. What is your total dollar return from this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Dollar returnb. What is your effective annual rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Effective annual return %

Margin account=$33880Number of shares=800Purchase price=$77Selling price=$84Call money rate=6.5% and…

You've just opened a margin account with $33,880 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $77 per s 6.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for four months and sell at a price of $84 per share. The company paid a dividend ou sold your stock. What is your total dollar return from this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar return What is your effective annual rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual return %

You've just opened a margin account with $33,880 at your local brokerage firm. You instruct your broker to purchase 800 shares of Landon Golf stock, which currently sells for $77 per s 6.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for four months and sell at a price of $84 per share. The company paid a dividend ou sold your stock. What is your total dollar return from this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar return What is your effective annual rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual return %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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Similar questions

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