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tankabanditka [31]
3 years ago
11

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

t 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 $27? (Ignore any dividends.)
Business
1 answer:
Lostsunrise [7]3 years ago
4 0

Answer:

20%

Explanation:

Data provided

Currently selling per share = $30

Cost of Microsoft after selling = $27

Margin percentage = 50%

The calculation of rate of return is shown below:-

Rate of return = (Currently selling per share - Cost of Microsoft after selling) ÷ Margin percentage × 100

= ($30 - $27) ÷ 50% × 30

= $3 ÷ 15

= 0.20

or

20%

Therefore for calculating the rate of return we simply applied the above formula.

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ason owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Jason ne
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An economic model is useful only if it: ______________
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b. contains no positive statements.

5 0
2 years ago
Regarding the overall effect of negative interest rates on the economy, economists
vova2212 [387]

Answer:

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Answer:

$14,343.25

Explanation:

The computation is shown below;

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7 0
2 years ago
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