Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 27, 2024

3. If you sell 100 shares short at $40 on 60% margin and buy them back a year later at $36, what would be your

3. If you sell 100 shares short at $40 on 60% margin and buy them back a year later at $36, what would be your rate of return? Assume commissions are 2%, interest is 1% and dividends per share are $2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bond Markets Analysis And Strategies

Authors: Frank J. Fabozzi

6th Edition

0131986430, 9780131986435

More Books

Students also viewed these Finance questions

Question

★★★★★

A financial agreement requires the payment of $1200 in 9 months, $1400 in 18 months, and $1600 in 30 months. When would an alternative single payment of $4000 have to be made if money is worth 7%...

Answered: 1 week ago

Question

★★★★★

2. Spend an hour several times a week observing the people who patronize the drive-up window of a local fastfood restaurant. Make a plan that includes lunchtime and dinner hours, and be sure to...

Answered: 1 week ago

Question

★★★★★

1. Make sure the skill to be assessed is important and can be taught. It takes time to develop good rubrics, so make sure the skill being assessed is worth everyones time and that the skill can be...

Answered: 1 week ago

Question

★★★★★

Knight, Inc., has issued a three-year bond that pays a coupon of 6.10 percent. Coupon payments are made semiannually. Given the market rate of interest of 5.80 percent, what is the market value of...

Answered: 1 week ago

Question

★★★★★

INDIRECT COST - GENERAL AND AMINISTRATIVE The company assigns General and Administrative expenses as at a rate of 7% of total direct cost to all projects over the course of the projects. Assumptions...

Answered: 1 week ago

Question

★★★★★

For vertically-related firms that each have market power, the problem facing the firms is that: Group of answer choices the markups of upstream and downstream firms that result in lower profits. the...

Answered: 1 week ago

Question

★★★★★

According to lean thinking, what is one of the biggest challenges when trying to deliver a large batch of work?It can lead to a lot of scope creep.Problems can be hidden in the volume of work.Larger...

Answered: 1 week ago

Question

★★★★★

A parts supply store orders a particular item on a weekly basis. The weekly demand is 3 0 units with a standard deviation of four units. The holding cost is $ 5 per unit per week and a 9 0 % in -...

Answered: 1 week ago

Question

★★★★★

analyze the decision of IKEA to enter the bricks and mortar US retail environment with its largest investment in a single country yet (Reuters, 2023). Is IKEA's counterintuitive move based on sound...

Answered: 1 week ago

Question

★★★★★

Chikako is applying for a full-time, salaried position as an administrative assistant with Hitachi Systems, LLC. During the interview process, Chikako explains that she has low vision and will need...

Answered: 1 week ago

Question

★★★★★

Mike, Miko, Michael and Mikhael formed a partnership several years ago. They have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline...

Answered: 1 week ago

Question

★★★★★

1. Analyze what filters were in place to block effective communication between the hospital administrators, medical staff, and affected patients.

Answered: 1 week ago

Question

★★★★★

3. Many times, we take the conversation away from others and make it our own. This practice not only wastes time, but is a major relationship killer. Here is how it works: At the beginning of the...

Answered: 1 week ago

Question

★★★★★

c. Turn up the volume and make another attempt to identify the communication style of the persons portrayed on the screen. This time the identification process should be easier because you will be...

Answered: 1 week ago

Previous Question Next Question