2 Problems need help with TONIGHT!!

Suppose you purchase 700 shares of stock at $52 per share with an initial cash investment of $14,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate.

a.

Calculate your return on investment one year later if the share price is $60. Suppose instead you had simply purchased $14,000 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  Rate of return

 %  

  Without margin, rate of return

   %  

b.

Calculate your return on investment one year later if the share price is $52. Suppose instead you had simply purchased $14,000 of stock with no margin. What would your rate of return have been now? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  Rate of return

 %  

  Without margin, rate of return

   %  

c.

Calculate your return on investment one year later if the share price is $36. Suppose instead you had simply purchased $14,000 of stock with no margin. What would your rate of return have been now?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  Rate of return

 %  

  Without margin, rate of return

 %  

You’ve just opened a margin account with $13,000 at your local brokerage firm. You instruct your broker to purchase 600 shares of Landon Golf stock, which currently sells for $82 per share. Suppose the call money rate is 7 percent and your broker charges you a spread of 1 percent over this rate. You hold the stock for 4 months and sell at a price of $90 per share. The company paid a dividend of $.44 per share the day before you sold your stock.

1.

What is your total dollar return from this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Dollar return

$   

2.

What is your effective annual rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

  Effective annual return

 %