FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hapter 3 Question 6 (of 20) Ti You sell short 400 shares of Microsoft that are currently selling at $50 per share. You post the

image text in transcribed
hapter 3 Question 6 (of 20) Ti You sell short 400 shares of Microsoft that are currently selling at $50 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your mrgin account, what will be your rate of return after 1 year if Microsoft is selling at $48? (Ignore any dividends.) 0 6,00% O 14.00%. o 8.00% 4.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Contemporary Issues In Development Finance

Contemporary Issues In Development Finance

Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi

1st Edition

1138324329, 978-1138324329

More Books

Students also viewed these Finance questions

Question

★★★★★
Two satellites orbit the Earth, with satellite 1 at a higher altitude than satellite 2. (a) Which satellite has the greater orbital speed? Explain. (b) Calculate the orbital speed of a satellite that...

Answered: 1 week ago

Question

★★★★★
On January 1, 2018, the Excel Delivery Company purchased a delivery van for $51,000. At the end of its five-year service life, it is estimated that the van will be worth $4,200. During the five-year...

Answered: 1 week ago

Question

★★★★★
2. Considerationdoing unto others as you would have them do unto you.

Answered: 1 week ago

Question

★★★★★
The accounting records of Earthtone Ceramics included the following balances at the end of the period: In the past, Earthtones warranty expense has been 8% of sales. During 2012, the business paid...

Answered: 1 week ago

Question

★★★★★
hapter 3 Question 6 (of 20) Ti You sell short 400 shares of Microsoft that are currently selling at $50 per share. You post the 50% margin required on the short sale. If you earn no interest on the...

Answered: 1 week ago

Question

★★★★★
The statement of financial position of K and S as at November 30, 2017 are provided as below. K S K K NCA PPES 138,000 115,000 Investment CA Receivables Inventory Bank and cash 162,000 300,000...

Answered: 1 week ago

Question

★★★★★
2%) Question 5. (3pt) A cylindrial bar of copper 16 mm in diameter and 90 mm long is subjected to a uniaxial tension test. Its length increased by 0.52 mm under a load of 58 kN. At the same time, its...

Answered: 1 week ago

Question

★★★★★
The consultant in the LOGage Company prepared accounts with the following normal balances: Cash $10,000, Salaries and Wages Expense $55,000, Service Revenue $105,000, Salaries and Wages Payable...

Answered: 1 week ago

Question

★★★★★
What most computer users don't know today is that anything done on a computer is never private. Bahaudin Mujtaba states in the Journal of Applied Management and Entrepreneurship, "e-mail is as public...

Answered: 1 week ago

Question

★★★★★
Research studies will include a Method, or Methodology section, which describes in detail how the study was undertaken. Which of the statements below is most accurate in regard to this?

Answered: 1 week ago

Question

★★★★★
Harwick Corporation has provided the following information for its segments: Revenues Operating profit Division A Division B Division C 7,800 297 1,450 13,500 Total 22,750 40 7 344 Which operating...

Answered: 1 week ago

Previous Question Next Question