1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
9966 [12]
3 years ago
12

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $25.00 per share. On March 1, a dividend of

$2.50 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $16.20 per share. You paid 10 cents per share in commissions for each transaction.a. What is the proceeds from the short sale (net of commission)?Proceeds from the short sale___ $b. What is the dividend payment?Dividend payment ____ $c. What is the total cost, including commission, if you have to cover the short sale by buying the stock at a price of $16.20 per share?Total cost including commission ____ $d. What is the net gain from your transaction?Net gain ____ $
Business
1 answer:
Kitty [74]3 years ago
6 0

Explanation:

The computations are shown below:

a. Proceeds from the short sale (net of commission)

= Number of shares × (Market selling price per share - commission per share)

= 100 × ($25 - $0.10)

= $2,490

b. The dividend payment is

= Number of shares × dividend paid per share

= 100 shares × $2.50

= $250

c. Total cost including commission is

= Number of shares × (Market purchase price per share + commission per share)

= 100 × ($16.20 + $0.10)

= $1,630

d. The net gain from your transaction is

= $2,490 - $1,630

= $860

You might be interested in
A broker-dealer offers 4 summer passes to an amusement park to each of its agents who sell at least $10,000 of bonds during the
inn [45]

Answer:

I (allowed) and IV (not considered soft dollar compensation)

Explanation:

Soft dollar compensation refers to payments made to brokerage firms or agents as commission revenue. They differ from hard dollar compensation because hard dollars are payments that were agreed upon before an investor started working with the broker, while soft dollars are based upon variable commissions.

4 0
3 years ago
When your local Internet service provider increased its monthly charge from $40 to $50, the number of subscribers fell from 2,00
love history [14]

Answer: Inelastic

Explanation:

Based on the information given, we would calculate the elasticity of demand which would be:

= (Change in Quantity / Change in Price) (Initial Price/ Initial Quantity)

Change in Quantity = 1800 - 2000 = -200

Change in Price = 50 - 40 = 10

Initial Price = 40

Initial Quantity = 2000

Elasticity of demand would then be:

= (-200/10)(40/2000)

= (-20)(0.02)

= -0.4

Since elasticity of demand is less than 1, it is an inelastic demand.

7 0
3 years ago
A restaurant review published in the local newspaper is an example of ________.
V125BC [204]
<span>A restaurant review published in the local newspaper is an example of publicity. When the review they can increase the number of customers.now a days nobody is visiting restaurants without checking reviews. Negative reviews will definitely spoil the business. Hotel with more positive reviews using it for publicity.</span>
6 0
3 years ago
Identify which of the following statements is true.
Papessa [141]

Answer:

B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

Explanation:

The statement written in the option B is correct.If both accumulated and current E&P have low balances,then we cannot corporate distribution as dividend rest of the options are false.Hence the answer is option B.

6 0
3 years ago
Suppose that the average growth rate of the economy has been 3​%. Given a forecast of 2​% growth this​ year, if rational expecta
Rudik [331]

Answer and Explanation:

Forecast error is a difference between Estimated data and real data, here Estimated data is referred to as forecast data.

According to rational expectations principles, expected forecast error's average always near to be zero.

Expected forecast error may be forecast or predict in future.

So, Expected forecast error will be zero (0%)

4 0
3 years ago
Other questions:
  • Mr. and Mrs. Haley are purchasing beachfront property in an upscale development. The home comes equipped with all furnishings. T
    6·1 answer
  • What is a risk management plan?
    10·1 answer
  • When Keisha started her new job, she went through ______ to help her transition and fit smoothly into the job and organization.
    7·1 answer
  • Account receivable for Crimson Inc. at the end of December 31, 2018 totals $200,000. This balance is due to four customers not p
    11·1 answer
  • Garfun, Inc., owns all of the stock of Simon, Inc. For 2014, Garfun reports income (exclusive of any investment income) of $480,
    11·1 answer
  • Since graduating from college five years ago, you have worked for a national chain of men's clothing stores. You have held sever
    11·1 answer
  • Students in the United States consistently score ________ on international assessments of mathematics and science than do studen
    13·1 answer
  • Neptune LLC is a company that manufactures electronic products. Its employees are given specific guidelines regarding the resour
    10·1 answer
  • At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock pri
    6·1 answer
  • What type of bank account is the best person?
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!