Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Show work in detail and explanation You decide to sell 1,000 shares of Marston Industries short when it is selling at 35. Your broker requires
Show work in detail and explanation
You decide to sell 1,000 shares of Marston Industries short when it is selling at 35. Your broker requires an initial margin deposit of 55 percent with no commission on the sale and a 6 percent interest rate on your margin loan. While you are short, Marston Industries pays a 75 pesewas per share dividend. At the end of one year you buy Marston Industries shares to cover your short sale at 30 and are charged a commission of 15. What is your rate of return on the investmentStep 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