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You are bearish on stock ABC, and its current market price is Euro 53 per share. You ask your broker to sell short 1, 300

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You are bearish on stock ABC, and its current market price is Euro 53 per share. You ask your broker to sell short 1, 300 shares. Your broker has a 50% margin requirement on short sales, so you add Euro 34, 450 on your account with the broker. Holding period is one year. If the maintenance margin is 35%, at which price you will get a margin call? (Round your answer to 2 decimal places.) Market price If you cannot allow yourself a loss higher than Euro 6, 500, which price-contingent order will you place and at which price? (Round your answer to 1 decimal place.) ABC has paid a year-end dividend of Euro 0.53 per share. Calculate your rate of return if, after one year the ex-dividend price per share is Euro 43. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return %

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