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Looking for clarification on Part C) Suppose that you sell short 250 shares of Weston (WN), currently selling for $70 per share, and give your

Looking for clarification on Part C)

Suppose that you sell short 250 shares of Weston (WN), currently selling for $70 per share, and give your broker $10000 to establish your margin account.

a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if WN stock is selling at (i) $78; (ii) $70; (iii) $64? Assume that WN pays no dividends. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

(i) Rate of return %
(ii) Rate of return %
(iii) Rate of return %

b. If the minimum margin is 25%, how high can WNs price rise before you get a margin call? (Round your answer to 2 decimal places. Omit $ sign in your response.)

Margin call will be made at price $ or higher

c. Redo parts (a) and (b), now assuming that WNs dividend (paid at year-end) is $1 per share. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places. Omit $ sign in your response.)

(i) Rate of return %
(ii) Rate of return %
(iii) Rate of return %

Margin call will be made at price $ or higher

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