You short sell $100$ shares of DarlaCo at $$75$ per share and make a margin deposit based on your broker's $60\%$ initial margin requirement $($IMR$).$ Exactly one year later, you close out your short position $($i$.$e$.,$ you buy the shares back$)$ when the stock is at $$68$ per share. DarlaCo does not pay a dividend.

What is your account value on the day you establish the short position?

What is your account equity the day you close out your short position?

Calculate the rate of return on your investment over the one year you held the position.

If your broker's maintenance margin requirement is $40\%,$ at what DarlaCo share price would you expect to get a margin call? $\backslash$

True or False: If DarlaCo paid a dividend during your short position, your return would decline.