After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her
Question:
After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 250 shares of Valero Energy. At the time of the sale, a share of common stock had a value of $85. Three months later, Valero Energy is selling for $76 a share, and Sandra instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $26. What is her profit for this short transaction?
Step by Step Answer:
Total profit for this short transaction is 2224 Pr...View the full answer
Focus On Personal Finance
ISBN: 9781265521974
7th Edition
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Business questions
-
Assume you just purchased 250 shares of Home Depot at $40 per share and 50 percent of this was purchased "on the margin." Fill in the blanks to determine your contribution to this transaction: Total...
-
After researching Best Buy common stock, Sally Jackson is convinced that the stock is overpriced. She contacts her account executive and arranges to sell short 200 shares of Best Buy. At the time of...
-
After receiving an inheritance, Sandra Yaworski decided to invest her newly acquired funds in real estate. In 20X1, she purchased the following properties: Each of the properties is a residential...
-
The value of a log is based on the number of board feet of lumber the log may contain. (A board foot is the equivalent of a piece of wood 1 inch thick, 12 inches wide, and 1 foot long. For example, a...
-
Solve -2.5 (3.8x - 1.9) = 83.7. Round the result to two decimal places.
-
The market for smoothies is perfectly competitive and the market demand schedule is in the first table. Each of the 100 producers of smoothies has the costs given in the second table when it uses its...
-
What are the key elements of a corporations strategic plan? AppendixLO1
-
Consider a diamond-shaped airfoil. The maximum thickness is 0.04 and occurs at mid-chord. The freestream Mach number is 2.0, and the airfoil is operating at a 5 degree angle of attack. a) Find the...
-
What of the following are characteristics of hedge funds? A. Strong prudential regulation B. Conservative investment strategy C. Low management fees D. Financial leverage
-
Consider a particle is confined in a three-level system. The probability of finding the particle in first level is 0.38, for second level 0.36, and for third level it is 0.26. What is the entropy of...
-
The Western Capital Growth mutual fund has: Total assets, $836,000,000 Total liabilities, $6,000,000 Total number of shares, 40,000,000 What is the funds net asset value (NAV)?
-
Bob Orleans invested $3,000 and borrowed $3,000 to purchase shares in Verizon Communications. At the time of his investment, Verizon was selling for $60 a share. a. If Bob paid a commission of $20,...
-
In Problem find an equation of the form Ax + By = C for the given line. The vertical line through (5, 0)
-
Hey i need the following pages done ASAP.Please and thank you D2L Lesson 1: Electrostatics - Physics X L1Electrostatics X Course Hero +...
-
Bed & Bath, a retailing company, has two departmentsHardware and Linens. The companys most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $...
-
Use the formula g'(a) = lim. [(g(x)-g(a) )/ (x-a) ] x-->a to find g'(x) for g(x) = srqrt(x+7). Find the equation fo the tangrnt line to g(x) at x =-5
-
As shown in the figure below, an incompressible liquid flows steadily and vertically upward in a circular cross-sectional pipe. At section (1), the velocity profile over the cross-sectional area is...
-
writE a paper on teamwork 1. Share an experience with working on teamwork during your academic journey or on the job. 2. Share both positive and negative experiences. 3. What are your suggestions...
-
In April 2018, Dan is audited by the IRS for the year 2016. During the course of the audit, the agent discovers that Dan's deductions for business travel and entertainment are unsubstantiated and a...
-
The following selected information was taken from Sun Valley Citys general fund statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2019: Revenues:...
-
For each of the following statements, circle T for true or F for false. a. Health insurance is available only as a benefit from an employer. b. You can continue your health insurance even if you...
-
Larry and Liz are a young couple both working full time and earning about $70,000 a year. They recently purchased a house and took out a large mortgage. Since both of them work, they own two cars and...
-
Beckys comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, she contracted a rare...
-
question 6 Timely Inc. produces luxury bags. The budgeted sales and production for the next three months are as follows july. august september Sales, in units 1,115. 1229. 1302 Production. in units...
-
On May 12 Zimmer Corporation placed in service equipment (seven-year property) with a basis of $220,000. This was Zimmer's only asset acquired during the year. Calculate the maximum depreciation...
-
Power Manufacturing has equipment that it purchased 7 years ago for $2,550,000. The equipment was used for a project that was intended to last for 9 years and was being depreciated over the life of...
Study smarter with the SolutionInn App