What is the net gain from your transaction

Assignment Help Financial Management

Reference no: EM132009758

On January 1, you sold short one round lot (that is, 100 shares) of Lowe's stock at $23.60 per share. On March 1, a dividend of $1.00 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $20.20 per share. You paid 30 cents per share in commissions for each transaction.

a. What is the proceeds from the short sale (net of commission)?

b. What is the 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 $20.20 per share?

d. What is the net gain from your transaction?

Reference no: EM132009758

Questions Cloud

What is the current market piece of these bonds : The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds?

Discuss some of the inherent public service issues : Discuss the drug wars in Mexico and the United States' role in the world to stop the flow of drugs across the Mexican border.

Describe implications for practice and future research : Describe the rationale for the methods used in collecting the outcome data - Describe strategies to take if outcomes do not provide positive results

Find what is the total aftertax cash flow to shareholders : National Business Machine Co. (NBM) has $6 million of extra cash after taxes have been paid. NBM has two choices to make use of this cash.

What is the net gain from your transaction : What is the proceeds from the short sale (net of commission)? What is the net gain from your transaction?

Does the united states reciprocate their laws : Determine the ability level of the law enforcement agency to effectively mitigate these types of crimes. Provide evidence to support your claim.

Using corporate valuation model approach : Using the corporate valuation model approach, what should be the company's stock price today?

What is the maximum cost nally would be willing to pay : What is the maximum cost Nally would be willing to pay for this project? (Do not round intermediate calculations. Round your answer to 2 decimal places.

Prepare appropriate adjusting entry for patent amortization : Prepare the appropriate adjusting entry for patent amortization in 2013 to reflect the revised estimate

User Account

All Pages