How much does the investor gain

Assignment Help Corporate Finance
Reference no: EM133123051

An investor shorts 100 shares of XYZ stock when the share price is $57 and closes out the position six months later when the share price is $42. The shares pay a dividend of $3 per share during the six months. How much does the investor gain?

Reference no: EM133123051

Questions Cloud

Discuss your project cost benefit analysis : How would BGNP go about developing its information systems - Show a work breakdown structure which follows your choice of approach/ methodology
What concerns would the auditor consider during the audit : The CEO and other senior management have large bonuses linked to both share prices and company profitability. What concerns would the auditor consider
What is the market risk premium : Consider the following information for three stocks, Stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly c
What is the net income for the current year : The entity declared and paid cash dividends or P1,000,000 and also declared and issued a share dividend. What is the net income for the current year
How much does the investor gain : An investor shorts 100 shares of XYZ stock when the share price is $57 and closes out the position six months later when the share price is $42. The shares pay
Case study-malaysian island resort : a. How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?
What is the price of a par value : What is the price of a $1,000 par value, semi-annual coupon bond with 23 years to maturity, a coupon rate of 08.10% and a yield-to-maturity of 06.40%?
Four management functions : Remember the four management functions? They are planning, organizing, leading, and controlling. Think of a job you have now or one you've had in the past. List
Assignment on beta coefficient : Stock X has a beta of 0.40 and Stock Y has a beta of 1.20. Which of the following statements must be true about these securities? (Assume the market is in equ

Reviews

Write a Review

Corporate Finance Questions & Answers

  Describe why a company might decide to save the money

Describe why a company might decide to save the money and utilize its in-house team as opposed to one of these firms.

  What is difference between accounting and economic exposure

Corporations have both accounting exposure and economic exposure to exchange rate risk. What is the difference between these two? Which types of exposure would be most significant, and why?

  Benefits of reinsurance accounting

Why do you think it is important for a reinsurance transaction to transfer risk in order for a company to obtain the benefits of reinsurance accounting? Discuss the accounting and legal issues behind such a requirement.

  How much will the yen cost in dollars

If the yen/dollar exchange rate is 125, how much will 25,000 yen cost in dollars? - If the dollar appreciates to 150 yen/dollar, how much will the 25,000 yen cost in dollars?

  Explain advantages of demutualization of mutual life insurer

Why have mergers and acquisitions among insurers increased over time? What is the meaning of demutualization? Briefly explain the advantages of demutualization of a mutual life insurer. What is a mutual holding company?

  On january 1 the total market value of the tysseland

on january 1 the total market value of the tysseland company was 60 million. during the year the company plans to raise

  What would you estimate carpettos cost of common equity

On the basis of the results obtained in parts a through c, what would you estimate Carpetto's cost of common equity to be?

  Value of the corporation with a all-equity capital structure

1.Value of the corporation with an all-equity capital structure?2- Value of the corporation if the BoD accepts the proposal to float bonds and repurchase shares.?

  Advantages of stock repurchases versus paying dividends

Explain how the use of leverage can increase shareholder's wealth and leverage can also impact you in your personal life. Explain how you can use it to your advantage.

  Purple haze machine shop is considering a four-year project

purple haze machine shop is considering a four-year project to improve its production efficiency. buying a new machine

  Is control issue likely to be of importance to stockholder

Explain how important do you suppose control is for the average stockholder of a firm whose shares are traded on the NYSE?

  Daryl bank is an investment broker with bank tank amp shank

daryl bank is an investment broker with bank tank amp shank a full service financial services firm serving the regional

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