FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the short sale.

image text in transcribed
You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account what will be your rate of return after one year if Microsoft is selling at $27? (Ignore any dividends) 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Building Financial Models

Building Financial Models

Authors: John Tjia

2nd Edition

0071608893, 978-0071608893

More Books

Students also viewed these Finance questions

Question

★★★★★
Leimersheim GmbH has adopted the following policies regarding merchandise purchases and inventory. At the end of any month, the inventory should be 15,000 plus 90% of the cost of goods to be sold...

Answered: 1 week ago

Question

★★★★★
please help According to the Break-Even EBIT analysis, shareholders are off with debt when EBIT O A worse, above OB. better, equal to OC. betier, below OD. better, above PP Click to select your...

Answered: 1 week ago

Question

★★★★★
4.2 A sample space S consists of five simple events with these probabilities: a. Find the probabilities for simple events E4 and Es. b. Find the probabilities for these two events: A=(E, E3, E4)...

Answered: 1 week ago

Question

★★★★★
Lower of Cost or Market Frost Companys inventory records for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be $125,000. On December 31, 2016, the cast of...

Answered: 1 week ago

Question

★★★★★
You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account...

Answered: 1 week ago

Question

★★★★★
JKL Company processes a direct material and produces three products: P 1 , P 2 , and P 3 . The joint costs of the three products in 2 0 1 8 were SAR 1 2 0 , 0 0 0 . The total number of units for each...

Answered: 1 week ago

Question

★★★★★
The VIF for Engine Size found for the Full Model is 6.5147. This VIF is calculated based on an R-squared value from another model. This R-squared value is 0.846501. The resulting VIF is1/(1-0.846501)...

Answered: 1 week ago

Question

★★★★★
Quick Stop Fashion House produces "fast fashion" clothes that represent the current fad. In the foreign environment, this type of product is considered highly sensitive. O sensitive. O insensitive. O...

Answered: 1 week ago

Question

★★★★★
"Bathworks Company wants to estimate its ending inventory based on the following data: beginning inventory of $70,000, net sales revenue of $195,000, purchases of $140,000, and a normal gross margin...

Answered: 1 week ago

Question

★★★★★
what were behind the sad and beautiful stories of these establishments? when one fails in business, what was missing? what went wrong? when one succeeds, what are the trade secrets?

Answered: 1 week ago

Question

★★★★★
You are in the role of a hacker trying to break down a hash table. The information collected so far indicates the hash table uses Quadratic Probing with h(k, i) = ((k+12) mod m) for collision...

Answered: 1 week ago

Question

★★★★★
1. We include here a pictorial representation of this chapter in the form of a mind map ( Figure 1.1 ). Use the key words we have included to refresh your memory of what we have covered in this...

Answered: 1 week ago

Question

★★★★★
1. In what ways is information technology being used by HR professionals?

Answered: 1 week ago

Question

★★★★★
2. In what ways is information technology being used by line managers?

Answered: 1 week ago

Previous Question Next Question