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please on firsf picture I dont understsnd issue? Chapter 11 Financial Planning Exercise Calculating long and short position profits Given that Hometown Care, Inc.'s stock

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I dont understsnd issue?
Chapter 11 Financial Planning Exercise Calculating long and short position profits Given that Hometown Care, Inc.'s stock is currently selling for $55 a share, calculate the amount of money that Calvin Haskins will make or lose) on each of the following transactions. Assume that all transactions involve 100 shares of stock, and ignore brokerage commissions. Input all answers as positive values. a. He short-sells the stock and then repurchases the borrowed shares at $70. Total select of $ b. He buys the stock and then sells it some time later at $70. Total select of $ c. He short-sells the stock and then repurchases the borrowed shares at $50, Total select of $ Financial Planning Exercise 5 Calculating return on investment Which of the following would offer the best return on investment? Assume that you buy $8,000 in stock in all three cases, and ignore interest and transaction costs in all your calculations a. Buy a stock at $45 without margin and sell it 1 year later at $60. b. Buy a stock at $70 with 50% margin and sell it 1 year later at $85. c. Buy a stock at $60 with 75% margin and sell it 1 year later at $65. Alternative Select offers the best return on the investment. Chapter 11 Financial Planning Exercise 1 Amount to invest to meet objectives Use Worksheet 11. 1. Alison Conroy is early in her career and now employed as the managing editor of a well-known business Journal. Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent. She would like to go on her own in about nine years and figures she'll need about $ 75,000 in capital to do so. Given that she thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions. a. How much would Nison have to invest today, in one lump sum, to end up with $ 75,000 in nine years? Round the answer to two decimal places b. If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in nine years? Round the answer to two decimal places. $ C. How about if she already has $5,000 socked away, how much would she have to put away annually to accumulate the required capital in nine years? Round the answer to two decimal places. $ d. Given that Alison has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective. Chapter 11 Financial Planning Exercise 6 Calculating short position profit How much profit (if any) would Max Adier make if he short-sold 500 shares of stock at $65 a share and the price of the stock suddenly tumbled to $55? Chapter 11 Financial Planning Exercise Calculating long and short position profits Given that Hometown Care, Inc.'s stock is currently selling for $55 a share, calculate the amount of money that Calvin Haskins will make or lose) on each of the following transactions. Assume that all transactions involve 100 shares of stock, and ignore brokerage commissions. Input all answers as positive values. a. He short-sells the stock and then repurchases the borrowed shares at $70. Total select of $ b. He buys the stock and then sells it some time later at $70. Total select of $ c. He short-sells the stock and then repurchases the borrowed shares at $50, Total select of $ Financial Planning Exercise 5 Calculating return on investment Which of the following would offer the best return on investment? Assume that you buy $8,000 in stock in all three cases, and ignore interest and transaction costs in all your calculations a. Buy a stock at $45 without margin and sell it 1 year later at $60. b. Buy a stock at $70 with 50% margin and sell it 1 year later at $85. c. Buy a stock at $60 with 75% margin and sell it 1 year later at $65. Alternative Select offers the best return on the investment. Chapter 11 Financial Planning Exercise 1 Amount to invest to meet objectives Use Worksheet 11. 1. Alison Conroy is early in her career and now employed as the managing editor of a well-known business Journal. Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent. She would like to go on her own in about nine years and figures she'll need about $ 75,000 in capital to do so. Given that she thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions. a. How much would Nison have to invest today, in one lump sum, to end up with $ 75,000 in nine years? Round the answer to two decimal places b. If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in nine years? Round the answer to two decimal places. $ C. How about if she already has $5,000 socked away, how much would she have to put away annually to accumulate the required capital in nine years? Round the answer to two decimal places. $ d. Given that Alison has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective. Chapter 11 Financial Planning Exercise 6 Calculating short position profit How much profit (if any) would Max Adier make if he short-sold 500 shares of stock at $65 a share and the price of the stock suddenly tumbled to $55

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