After researching valero energy common stock

Assignment Help Financial Management
Reference no: EM131978027

After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 310 shares of Valero Energy. At the time of the sale, a share of common stock has a value of $37. Three months later, Valero Energy is selling for $25 a share, and Sandra instructs her broker to cover her short transaction. Total commission to buy and sell the stock were $67.

What is her profit for this short transaction?

Round your answer to the nearest whole dollar. Do not include the comma, period, and "$" sign in your response.

Reference no: EM131978027

Questions Cloud

Prepare journal entries for the transactions : Kenseth estimates that uncollectible accounts receivable at year-end are $3,910. Prepare journal entries for the transactions
How technologies or information systems : Considering your chosen topic, prison violence a two (2) page paper in which you: 1. Discuss how technologies or information systems have contributed to the pr
Discuss your views on thr given lawsuit : Discuss your views on this lawsuit - do you feel it is a valid lawsuit? Why or why not? What should management do to prevent lawsuits.
Understand greco-roman culture : What patterns do you see and how can they be used to better understand Greco-Roman culture?
After researching valero energy common stock : After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. What is her profit for this short transaction?
Required for consideration by all scholarship programs : Your personal circumstances as related to your financial need for a scholarship. Your academic and career goals
What is the book value for share of casper stock : What is the book value for a share of Casper stock?
Calculate the best-case and worst-case npv figures : Calculate the best-case and worst-case NPV figures.
Calculate the hernandez total return for investment : Calculate the Hernandez's total return for this investment.

Reviews

Write a Review

Financial Management Questions & Answers

  If debt financing is used in a for-profit corporation

If debt financing is used in a for-profit corporation, more of a firm's operating income is available for distribution to investors (owners and creditors). The additional available operating income arises as a result of

  Explain the emergency fund goals

How long would it take her to achieve the emergency fund goal above if she currently has $18,500 saved, invests $300 per month, and earns an annual percentage yield or APY of 4.25% after taxes in her money market mutual fund.

  Compute the cost to lease if lease payments

Compute the cost to lease if lease payments and associated tax savings are at the beginning of each year. end of each year.

  Paying cash for all the shares outstanding

Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 82,000 $ 15,500 Shares outstanding 39,000 14,000 Per-share values: Market $ 54 $ 19 Book $ 16 $ 9 Assume that Firm X acquires Firm Y by paying cash f..

  What will the spot exchange rate be after one year

What will the spot exchange rate be after one year? What is the underlying factor that would cause such a change in the interest rate differential?

  What is projected cash balance

LPD Logistics, Inc.'s projected sales for the first six months of 2010 are given below. Jan. $300,000 April $350,000 Feb. $350,000 May $500,000 Mar. $475,000 June $400,000 20% of sales are collected in the month of the sale, 75% are collected in the ..

  At what price should the annual payment bond sell

McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 5.25% coupon paid semi annually (2.625% each 6 months), and those bonds sell at their par value. McCurdy's Class P bonds have the same risk, maturity, and par value, but the..

  Preferred stock-what is the value of the stock

A company is issuing preferred stock that will pay a 4% dividend but will not pay the first dividend until 6 years from now. If the required return is 8%, what is the value of the stock today? Assume a par value of $100.

  Concerning deductible ira contributions in the year

Which of the following statements concerning deductible IRA contributions in the year 2017 is NOT correct?

  Under certain conditions-dividend policy is irrelevant

Under certain conditions, dividend policy is irrelevant. What is it that they are specifically claiming to be irrelevant? Explain with the following example.  Now the firm can choose whether to pay out a 50% dividend that will require the issuance of..

  Tangshan mining has extended credit terms

Tangshan Mining has extended credit terms of 3/15 net 30 EOM. What is the cost of giving up the cash discount, assuming payment would be made on the last day of the credit period? Show calculations.

  What is the market value of the shareholders equity

What is the market value of the shareholders’ equity if assets have a market value of $9,000?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd