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You sell short 400 shares of Microsoft that are currently selling at $60 per share. You post the 40% margin required on the short
You sell short 400 shares of Microsoft that are currently selling at $60 per share. You post the 40% 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 1 year if Microsoft is selling at $54? (Ignore any dividends.) Multiple Choice 25.00% 12.50% 18.75% 43.75%
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Brian Zwicker
11th Canadian Edition
132564440, 978-0132564441
