You decide to sell short $200$ shares of Charlotte Horse Farms when it is selling at its

yearly high of $$61.$ Your broker tells you that your margin requirement is $45$ percent

and that the commission on the purchase is $$155.$ While you are short the stock,

Charlotte pays a $$2\mathrm{.}00$ per share dividend. At the end of one year, you buy $200$

shares of Charlotte at $$45$ to close out your position and are charged a commission

of $$145$ and $9$ percent interest on the money borrowed. What is your rate of return

on the investment, in percentage format, rounded to the nearest hundredth?

$\sqrt[A]{?}$

Question $50(35$ points$)$

The current risk$-$free rate is $4\mathrm{.}00$ percent and the market risk premium is $5\mathrm{.}00$

percent. You are trying to value ABC company and it has an equity beta of $\mathrm{.}90.$ The

company earned $$2\mathrm{.}50$ in the year that just ended. You expect the company's

earnings to grow $4\mathrm{.}00$ percent per year. The company has an ROE of $12$

percent. What is the value of the stock, rounded to the nearest cent?

A What is the present value of the

growth opportunity, rounded to the nearest cent?