Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You sold short 100 shares of Exxon Mobil common stock on margin at $80.15 per share. Assume the initial margin is 50% and the maintenance
You sold short 100 shares of Exxon Mobil common stock on margin at $80.15 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $85.89, and it has paid cash dividends of $2.98 per share. What is your return on equity? Ignore margin interest.Enter your answer rounded to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started