Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Short Sales Action or Formula Ending Return on for Column B St Price Investment Initial Investment $500,000.00 Initial Stock Price $100.00 $170.00 Number of Shares
| Short Sales | Action or Formula | Ending | Return on | |
| for Column B | St Price | Investment | ||
| Initial Investment | $500,000.00 | |||
| Initial Stock Price | $100.00 | $170.00 | ||
| Number of Shares Sold Short | 10,000 | (B4/B9)/B5 | 160.00 | |
| Ending Stock Price | $70.00 | Enter data | 150.00 | |
| Cash Dividends Per Share | $0.00 | 140.00 | ||
| Initial Equity Percentage | 50.00% | 130.00 | ||
| Maintenance Margin Percentage | 30.00% | 120.00 | ||
| 110.00 | ||||
| Return on Short Sale | 100.00 | |||
| Capital Gain on Stock | $300,000.00 | B6*(B5-B7) | 90.00 | |
| Dividends Paid | $0.00 | B8*B6 | 80.00 | |
| Net Income | $300,000.00 | B13-B14 | 70.00 | |
| Initial Investment | $500,000.00 | B4 | 60.00 | |
| Return on Investment | 60.00% | B15/B16 | 50.00 | |
| 40.00 | ||||
| Margin Positions | 30.00 | |||
| Margin Based on Ending Price | 114.29% | (B4+(B5*B6)-B14-(B6*B7))/(B6*B7) | 20.00 | |
| 10.00 | ||||
| Price for Margin Call | $115.38 | (B4+(B5*B6)-B14)/(B6*(1+B10)) |
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
Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
